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The Subgroup Co-Chairs are: China and Russia
Download here: Subgroup Terms of Reference and Work Plan
This Subgroup takes forward G20 Leaders commitments on financial literacy and financial consumer protection. It supports and complements work of the existing Subgroups on activities specifically related to consumer protection and financial literacy in their work programs. It also takes steps to reinforce integration of perspectives and experience from developing countries into global discussions and guidance on financial consumer protection and financial literacy.
Effective financial consumer protection is an essential element of financial inclusion, and of growing importance for policymakers implementing policies to support greater financial inclusion. Proportionate regulation and supervision can help ensure transparency and fair conduct by providers, which in turn enables consumers to understand the benefits of formal products and providers and to make choices that fit their needs and represent good value for money. Together, these interventions build trust in the formal system and promote improved uptake of conventional and innovative financial services. Similarly, well-designed financial capability interventions play an important role in reinforcing protective policy regimes and responsible business conduct by enhancing consumers' abilities to select suitable financial products, exercise their rights, and fulfill their responsibilities.
The G20 Principles for Innovative Financial Inclusion make note of the important linkages between consumer protection, financial education and financial inclusion. Principle 4 ("Protection") and Principle 5 ("Empowerment") stress the importance of developing effective consumer protection and financial literacy interventions. Other work of the GPFI (e.g. the GPFI white paper "Global Standard-Setting Bodies and Financial Inclusion for the Poor" and the issues paper "Financial Inclusion – A Pathway to Financial Stability? Understanding the Linkages") underscores the importance of these two G20 Principles in promoting the kind of responsible financial inclusion that will benefit low income customers as well as contribute to broader development goals in the countries where they live.
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