2019 Annual General Meeting

Key points:

• Appointment of the new FinCoNet Chair and Vice-Chair
• Forward looking discussions on key topics relating to financial consumer protection, including creditworthiness assessment, financial advertising and product governance and culture
• Interactive workshop on SupTech approaches for market conduct supervision
• International seminar on behavioural insights for conduct supervision

On 13-14 November 2019, the International Financial Consumer Protection Organisation (FinCoNet) held its Annual General Meeting (AGM) in Rome, hosted by the Central Bank of Italy.  Representatives from 31 jurisdictions around the world, as well as international organisations, participated in the AGM.  The meeting was held back-to-back with an international seminar on behavioural insights for conduct supervision co-sponsored by FinCoNet and the Central Bank of Italy, focussing on key insights and experiences from academics and supervisory authorities alike.

At the AGM, FinCoNet members appointed Ms Maria Lúcia Leitão, Head of the Banking Conduct Supervision Department at the Central Bank of Portugal as its new Chair.  Previously Ms Leitão served as Vice-Chair of FinCoNet and was Acting Chair of the organization since May 2019 following the expiration of the term of Ms Lucie Tedesco of the Financial Consumer Agency of Canada.

Assuming the role of Chair, Ms Leitão said:

“I am filled with pride and joy to take on the role of FinCoNet Chair and to continue the important work of the organisation in promoting robust and effective supervisory guidelines and best practices to enhance financial consumer protection, trust and confidence.  The success of FinCoNet is a result of our members’ strong belief in the benefits and power of peer-to-peer relationships across the global community, which I am honoured to lead as we work together to fulfil our objectives and promote the best interests of financial consumers around the world.”

FinCoNet also appointed Mr Chris Green, Group Senior Manager – Credit at the Australian Securities and Investments Commission as its new Vice-Chair.  Mr Green said:

“Since its establishment as an international organisation in 2013, FinCoNet has made an invaluable contribution, in terms of examining key issues relating to financial consumer protection via its Standing Committees and developing resources for members.  I am delighted to take on the role of FinCoNet Vice-Chair and assist the organisation to be an important voice for financial market conduct supervisors.”

The 2019 AGM provided an opportunity for FinCoNet members to come together, share information and advance work on issues of high importance to financial consumer protection supervisors worldwide.  Members also shared information about current risks and priorities they are dealing with as financial consumer protection supervisors, particularly relating to the themes of consumer credit, digitalisation, oversight tools, the evolving perimeter of supervision and inducements and incentives.

FinCoNet also announced the reappointment of the following members to the Governing Council: the Central Bank of Portugal, the Central Bank of Spain, the Central Bank of Brazil, the Central Bank of Italy and the Financial Services Agency of Japan.

During the AGM FinCoNet welcome two new members, the Central Bank of Mozambique and the National Bank of Ukraine.

Key highlights from the AGM included the following:

Creditworthiness assessment: this is an issue of major importance to FinCoNet members as it plays a crucial role in the responsible lending process.  FinCoNet’s Standing Committee 2 had conducted a preliminary survey exercise to inform the development of a more comprehensive questionnaire designed to solicit information about members’ supervisory approaches towards creditworthiness assessments, which was discussed by members.  A final report will be prepared in 2020.

Supervisory technology (SupTech): the issue of the use and application of SupTech tools is changing the face of conduct supervision and many FinCoNet members are developing approaches and capabilities in this space.  FinCoNet’s Standing Committee 4 presented the findings of a survey conducted among members to gather key information about their SupTech strategies and examples of SupTech tools either already in use or being trialled.  A final report will be prepared in 2020.

Related to this project, FinCoNet members participated in an interactive workshop, in which experts from the Bank of International Settlements, the World Bank and the OECD participated and shared information about issues at an international level.  In addition, a number of FinCoNet members shared their experience of implementing or testing SupTech tools, such as machine learning or web-scraping tools, to support specific supervisory activities in their jurisdiction.

Financial advertising: advertisements for financial products target financial consumers via a wide range of different channels and FinCoNet members are responsible for supervising compliance of such advertisements and taking action where problems are identified.  FinCoNet’s Standing Committee 5 had conducted a survey among members seeking key information and supervisory approaches to financial advertising, including monitoring compliance with relevant rules and taking action in the event of misleading or incorrect advertisements.  A final report will be prepared in 2020.

Financial product governance and culture: another current topic is the issue of policy and supervisory approaches towards the oversight and governance of financial products and the relationship with firm culture. FinCoNet Standing Committee 6 had conducted a survey to gather key information about jurisdiction approaches and challenges. The survey was also conducted among members of the G20/OECD Task Force on Financial Consumer Protection in order to enhance the reach and impact of the project.  A final report will be prepared in 2020.

International Seminar on Behavioural Insights for Conduct Supervision

The AGM was followed by the FinCoNet / Central Bank of Italy International Seminar on the theme of Behavioural Insights for Conduct Supervision on 15 November 2019.  The Seminar brought together FinCoNet members, academics and other external stakeholders to hear from experts in the field and join an engaging discussion on the topic.  The Seminar included the following:

·        A range of academic insights to better understand how behavioural insights can inform conduct supervision approaches and related activities.

·        Sharing of experiences from financial conduct supervisors on the latest application of behavioural insights to their conduct supervision approaches, including lessons learnt.

The FinCoNet AGM 2020 will be held in Lisbon, on 11-13 November 2020, hosted by the Central Bank of Portugal and followed by an international seminar.

ENDS

1. 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.
2. Members of FinCoNet are public entities that have a financial market conduct and financial consumer protection supervision mandate.
3. The OECD acts as the Secretariat of FinCoNet providing administrative, logistical and technical support.
4. 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].