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FINANCIAL SERVICES BOARD

Promoting an informed nation. FINANCIAL SERVICES BOARD. THE FSB’s CONSUMER FINANCIAL EDUCATION PROGRAMMES : PRESENTATION at the IFIE and IOSCO GLOBAL INVESTOR EDUCATION CONFERENCE , CAIRO 9 November 2010 BERT CHANETSA , DEO : INVESTMENT INSTITUTIONS. Consumer vs Investor Education.

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FINANCIAL SERVICES BOARD

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  1. Promoting an informed nation FINANCIAL SERVICES BOARD THE FSB’s CONSUMER FINANCIAL EDUCATION PROGRAMMES : PRESENTATION at the IFIE and IOSCO GLOBAL INVESTOR EDUCATION CONFERENCE , CAIRO 9 November 2010 BERT CHANETSA, DEO: INVESTMENT INSTITUTIONS

  2. Consumer vs Investor Education In SA the target market for CE is all people in SA This includes current investors as well as prospective investors The idea is to inform and educate consumers so that they can make effective choices; also, to attract new consumers of financial products and services 1

  3. Introduction • The FSB was established by The Financial Services Board Act No. 97 of 1990, to oversee primarily the non-banking financial services industry in South Africa in the public interest • In 2000 the Act was amended to mandate the FSB to: “Promote programmes and initiatives by financial institutions and bodies representing the financial services industry to inform and educate users and potential users of financial products and services”. • This was followed by the development of a FSB CE strategy which was approved by the FSB Board in 2001. 2

  4. Funding • The FSB’s Discretionary Fund • The Foundation • Partnerships 3

  5. Why consumer financial education? More complex financial markets Different government departments and regulators administer various pieces of consumer protection legislation Low levels of understanding of financial terminology Secondary effects of global financial crisis 4

  6. Why financial education, cont’d 26% of South African adults do not use financial products – formal or informal 72% of adults say they are not saving 28% of adults say they get money from friends and family 8.4 million out of 18 million credit active consumers have impaired credit records- Finmark Trust 2009 5

  7. The FSB’s targeted financial education programme • Budgeting • Saving • Debt management • Fraudulent schemes • Insurance, retirement, investment, financial advisory services • Rights & responsibilities • Formal and community education 6

  8. Commuter and shopper education Community engagement Messages: money management, debt, credit, short-term insurance and the rights and responsibilities of consumers Presentations and seminars Expanding target groups 7

  9. Media campaigns • Weekly programmes for 6 months • Others by invitation • FSB staff, ombudsman and other Financial sector institutions interviewed. 8

  10. Community Education Workshops • Convened 204 workshops in 9 provinces during 2009 • 5034 consumers reached • 428 consumers used telecare facility • 160 consumers required debt relief solutions via telecare facility 9

  11. Stokvel TV(Informal Savings Club) • Project presented from June to November 2009 • 1,800 DVD’s distributed to 1,800 Church congregations in SA • Article published in Daily Sun newspaper once a month • (readership = 5 million per day) • DVD’s then distributed to Stokvels in surrounding communities • From Stokvels, DVDs shown in • Estokini Kiosks in public areas for 180 days • Topics: Budgeting, Saving, Debt management, Long term insurance, Short term Insurance, Consumer • rights & responsibilities 10

  12. Publications : Bouquet Magazine • Targeted at farm-owners and farm-workers • Readership of 64,000 • FSB articles published in 4 bi-monthly editions during 2009 - 2010 11

  13. Financial wellness events • Financial Literacy as part of EAP (Employee Assistance Programmes) • Private companies, NGO’s and Government Departments 12

  14. Schools and Youth “MONEY in ACTION” • Grade R – 12 • EMS, Math Lit., Life Orientation • CD- ROM based • 59,150 CDs copied • Includes voice-overs • 4 Stand-alone booklets per phase and band • 72,667 booklets printed and distributed • Funded by Foundation, FSB & SAIA • Developed by e-Learning Laboratory • 60 workshops completed with 983 teachers 13

  15. “Managing your money” • Mathematical Literacy resource for teachers of Grades 10, 11 and 12 • 123 workshops with 7720 teachers - 2008 to 2010 • Funded by FSB and SAIA • Developed by Bright Media • WC and NC completed • 2011 complete all Math literacy teachers 14

  16. Financial guide for youth • Project completed • 157,000 booklets printed • 6,000 booklets distributed • 108 Workshops • 3,010 Attendees • M:42%F: 58% • 11 trainers used • Final report received electronically 15

  17. Careers Exhibitions • Messages • Information on dealing with financial services and product providers • Careers in the financial sector 16

  18. Monitoring and Evaluation Important for accountability purposes and to correct any problems with a project The FSB includes a M&E component in each of its project proposals; each project is fully evaluated The FSB has produced a guide to M&E; can be found on our website www.fsb.co.za –consumer education department 17

  19. JSE LIMITED Consumer Education Schools Challenge Universities Challenge Community education 18

  20. FSB’s international activities OECD • Co-chairs the Expert sub-group with Portugal on national strategies • Member: Expert sub-group on measurement of financial literacy • Member: Expert sub-group on financial education in schools • Member: International Network on Financial Education (INFE) • Member: Financial Consumer Protection Network (Finconet) 19

  21. FSB’s international activities, cont’d CISNA(Committee for Insurance, Securities & Non-banking Financial Authorities) • Organise, based on demand, consumer education familiarisation programmes for SADC regulators (Malawi, Swaziland, Zambia, Ghana, Uganda, Mozambique, Zimbabwe) 19a

  22. Addressing the need • Need for more coordination of financial education in South Africa for more effective resource use and greater impact • The FSB has developed a draft National Consumer Financial Education Strategy – this initiative is proceeding • It is envisaged that a coordinating committee supported by the FSB and other stakeholders will be established to lead the coordination of financial education in South Africa 20

  23. Other upcoming highlights • The FSB will be hosting the OECD/FSB International Conference and meetings on Financial Education in Cape Town between 24 and 28 October 2011 • Back-to-back with this the FSB will be hosting the OECD/IOPS/FSB Global Forum and meetings at the same venue 21

  24. Work in progress • The CED is part of an FSB internal initiative to develop a trustee education e-learning programme • An interactive financial education website is being developed • The FSB is participating in an international pilot survey on financial education coordinated by the OECD • The FSB will conduct 70 workshops in 50 public FET colleges for ±5000 level 4 learners 22

  25. QUESTIONS

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