- Online Supervisory Toolbox of oversight tools and approaches to be made public
- Approval for release of consultation paper on Guidance to Supervisors on Digitalisation of short term, high cost consumer credit
- Approval for release of Report on Practices and Tools required to support Risk-based Supervision in the Digital Age
- Forward looking discussions on key topics, including advancing work on financial advertising and financial product governance, and elections to the Governing Council
On 6-7 November 2018, the International Financial Consumer Protection Organisation (FinCoNet) held its Annual General Meeting in Brasilia, hosted by the Central Bank of Brazil. Representatives from twenty three supervisory authorities from around the world, as well as international organisations, participated in the AGM. The meeting was held concurrently with the fourth Financial Citizenship Forum of the Central Bank of Brazil, and followed by an International Seminar on the topic of Open Banking on 8 November 2018, addressing developments, issues and challenges in this space from a supervisory perspective.
Among other things, FinCoNet members approved the release of a new report on the Practices and Tools required to support Risk-based Supervision in the Digital Age and a consultation paper on Guidance to Supervisors on Digitalisation of short term, high-cost consumer credit. They also approved the public release of an online Supervisory Toolbox of oversight tools used by FinCoNet members in their ongoing supervision of the market. The toolbox is designed to help FinCoNet members and other supervisory authorities learn more about how FinCoNet members undertake their supervisory role in their jurisdictions.
Ms Lucie Tedesco, Chair of FinCoNet said: “Working together, FinCoNet has this year produced major outputs relating to risk-based supervision and issues relating to high-cost lending. FinCoNet enables members and observers to share and learn from one another's experiences, and in doing so supports our collective drive to identify best practices for financial consumer protection.”
During the Open Meeting of the AGM, FinCoNet members advanced work on issues of high importance to financial consumer protection supervisors worldwide including financial advertising and product oversight and governance. They also shared information about current risks and priorities they are dealing with as financial consumer protection supervisors, particularly relating to consumer credit, responsible lending and digitalisation.
Ms Maria Lúcia Leitão, Vice-Chair of FinCoNet said: “FinCoNet is focussed on the most important issues facing financial consumers and promoting effective supervisory practices and approaches, particularly relating to consumer credit and banking. The ongoing shift to an increasingly digital financial services landscape only serves to underscore the important work that FinCoNet’s Standing Committees have undertaken, and continue to undertake, relating to the digitalisation of consumer finances.”
FinCoNet also announced the reappointment of the following members to the Governing Council: the Australian Securities and Investments Commission; the Financial Consumer Agency of Canada; the Federal Financial Supervisory Authority (Germany); the Central Bank of Ireland; the Financial Services Authority (Indonesia); and the Financial Sector Conduct Authority (South Africa).
Online Supervisory Toolbox
The online Supervisory Toolbox is a comprehensive database of supervisory and oversight approaches and tools used by FinCoNet members. The Toolbox has now been made public, which will allow FinCoNet members as well as other interested organisations who are not currently members of FinCoNet, to research and learn more about the supervisory tools that members use in their jurisdictions.
Guidance to Supervisors on Digitalisation of short term, high cost consumer credit
FinCoNet’s Standing Committee 2 has developed guidance to help supervisors effectively address financial consumer protection risks relating to the provision of short term, high-cost consumer credit through digital channels. The guidance will now be the subject of a public consultation that will be available for comment until mid-January 2019.
Report on Practices and Tools required to support Risk-based Supervision in the Digital Age
Technology is rapidly transforming the world, particularly the financial services sector. This digital transformation has important implications for market conduct supervisors and this comprehensive report explores how jurisdictions from all over the globe are adapting their supervisory practices for the digital age. This Report produced by FinConet’s Standing Committee 4 is an important contribution to FinCoNet’s growing body of work on this topic.
ENDS
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].
