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

Promoting an informed nation

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

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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.

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Funding

The FSB’s Discretionary Fund

The Foundation

Partnerships

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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

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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

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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

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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

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Media campaigns Weekly programmes for 6

months Others by invitation FSB staff, ombudsman

and other Financial sector institutions interviewed.

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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

Community Education Workshops

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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

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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

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Financial wellness events Financial Literacy as part of EAP

(Employee Assistance Programmes)Private companies, NGO’s and Government

Departments

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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

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

“Managing your money”

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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

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Careers Exhibitions Messages

Information on dealing with financial services and product providers

Careers in the financial sector

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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

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JSE LIMITED Consumer Education

Schools Challenge Universities Challenge Community education

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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)

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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)

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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

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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

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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

QUESTIONS