G20 Finance Ministers Agree on High-Level Financial Consumer Protection Principles

Date Published 10/31/2011
Author Marja Hoek-Smit
Theme Housing Finance Policy

During the G20 Finance Ministers and Central Bank Governors Meeting in Paris new principles on financial consumer protection were endorsed. The principles were developed by the Task force on Consumer Protection of the OECD at the request of the G20 finance ministers and in close cooperation with the Financial Stability Board and its Consultative Group. The process involved consultations with other international bodies and standard setters, consumer groups and industry associations. The ten principles include guidelines on the following issues:

1. Legal, Regulatory and supervisory Framework
2. Role of Oversight Bodies
3. Equitable and Fair Treatment of consumers
4. Disclosure and Transparency
5. Financial Educations and Awareness
6. Responsible Business conduct of financial Services Providers and Authorized Agents    7. Protection of Consumer Assets against Fraud and Misuse
8. Protection of consumer Data and Privacy
9. Complaints Handling and Redress
10. Competition

The principles are voluntary and designed to assist countries in their efforts to enhance financial consumer protection. Indeed, the principles are “high-level” and lack specificity in order to be applicable to different transactions and related risk profiles. They need to be adapted to specific national and sectoral contexts and G20 members are encouraged to review their frameworks for consumer protection in the light of these principles. <Principles on Consumer Protection>

<Consumer Protection/Mandatory Disclosure>

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