1. Improving financial capability – why and how Shaun Mundy Head of Financial Capability Department Financial Services Authority, UK

2. Financial capability – what’s the problem? Why and how should regulators get involved? How can you make a difference? Lessons the FSA can share Questions Content

3. In for the long term Work in partnership Agreed priorities Financial capability – so what’s the problem? There’s a problem we have to solve Demographic change – ageing & fragmentation Lack of confidence and understanding No one organisation has the responsibility, incentive or capability to solve it alone Improvements will take time and new ways of thinking

4. FSA statutory objectives Secure an appropriate degree of protection for consumers Promote public understanding of the financial system

5. Why and how should regulators get involved? Consumers who individually –are financially capable –are able to take responsibility for their own actions Consumers who, as a group, can influence the market Know your audience and their needs Set priorities Create resources bearing in mind audience – eg paper or web? Test resources and create evaluation Promote resources Evaluate and develop Why? Getting started …

6. Tips : simple research and evaluation Focus Groups Consumers or stakeholders? Design and test questions first Explain reasons for focus group, expected length and ‘ground rules’ to keep discussions on track Offer an incentive – nice lunch or hard cash? Questionnaires Bear in mind the objectives of your questionnaire before you start to draft Consider how you want to present the results before you start to draft the questions – scales of approval/agreement to certain statements/percentages of ‘yes’ answers? Keep it as short and simple as possible Test it first!

7. Consumer information and education: Website - Online tools, learning and warnings Consumer publications – covering traditional subjects as well as latest hot topics Campaigns – raising awareness of current issues and resources How can you make a difference?

8. A website Personal finance tools and calculators Information on issues and generic products Tables to allow consumers to compare deals and products Service allowing consumers to check if their adviser/lender is authorised Learning online

11. Consumer publications Fact sheets and guides Plain language Relevant distribution channels

12. Campaigns Raise awareness of issues and resources Target promotion and ensure that messages match presentation of tools (fun, plain language promotion of complex and time consuming tools or information will not work)

14. Promotion of resources Press office Events Campaigns Direct marketing Syndication Newsletter for stakeholders

15. Balance of responsibility Firms and regulator can share responsibility for providing consumers with information

16. The FSA-led National Strategy for Financial Capability

17. Planning the Strategy Advisory Group Schools Retirement Advice BorrowingFamilies W orkplace Young Adults FC Steering Group FSA Contributing organisations Public understanding objective Stakeholder objectives

18. Moving the Strategy forward Working Groups research and plan pilots Pilot projects run Evaluation Focus on seven projects for implementation/further development Research to establish seven priority areas/ audiences 20032004 2005 Today

19. Lessons we can share Get to know your audience and test new resources Set priorities and evaluate progress Need to work together with industry, voluntary agencies and Government One organisation needs to take the lead Build an attractive business case for funding

20. Any questions?