At its Annual General Meeting, hosted by the Financial Services Board of South Africa, FinCoNet members examined the negative impact inappropriate sales incentives can have on responsible lending practices. Findings from a recent survey of 23 jurisdictions highlighted a number of practices by lenders which contributed to unsuitable or irresponsible lending. FinCoNet will, over the coming months, be publishing a report based on the findings of the review, to be used as the basis for the development in 2016 of guidance on how to promote effective supervisory approaches to help address these issues.
FinCoNet members also considered the risks to consumers, including security risks, associated with the increased use of online and mobile payments by consumers. FinCoNet will be progressing work on this important topic and plans to publish a report in 2016 following the completion of review in order to help supervisory authorities in their role of protecting the interests of consumers.
At the meeting members also shared experiences on a range of consumer protection issues across countries and how supervisory authorities were dealing with those issues including, consumer over-indebtedness, transparency of disclosures by banks including fees and charges, access to basic financial services, developing a consumer focused culture, challenges of new technologies, consumer complaints and cross border cooperation.
FinCoNet has been created in response to the growing focus on financial consumer protection worldwide, with a particular reference to banking and credit, and the need for greater collaboration, interaction and sharing among supervisory authorities in order to protect the interests of consumers of financial services.
Notes for editors
- FinCoNet was formally established in 2013 as a new international organisation of financial consumer protection supervisory authorities. The goal of FinCoNet is to promote sound market conduct and enhance financial consumer protection through efficient and effective financial market conduct supervision, with a focus on banking and credit.
- Members of FinCoNet are public entities that have a financial market conduct and financial consumer protection supervision mandate.
- The OECD acts as the Secretariat of FinCoNet providing administrative, logistical and technical support.
- For more information about the work of FinCoNet or becoming a Member, please visit www.finconet.org for more information or contact the Secretariat [katerina.kodlova@oecd.org].
