Transcript The European Agenda for Retail Banking

European Commission
initiatives for financial
education
Magyar Nemzeti Bank
Conference on Financial Awareness
2 October 2008, Budapest
Daniel Kosicki
Outline
• Background
• Communication on Financial Education
• Commission initiatives
• Financial education on EU agenda
Background
• 2005: included in the White Paper on Financial Services
Policy (2005-2010): Commission committed to promoting best
practice, and potentially facilitating joint projects
• 2007 March: Commission’s high level conference on
Increasing Financial Capability
• 2007 May: included in the Green Paper on Retail Financial
Services, as element in “empowering consumers”
• 2007 November: repeated in the Single Market Review
(communication Single Market for 21st century Europe)
Background
• DG SANCO:
– Dolceta: financial services explained for adults
(www.dolceta.eu)
– Europa diary: includes information on consumer rights and
options, including financial services
• DG EMPL: project on "Financial education and its role in
combating financial exclusion“. Conference on financial
inclusion in Brussels on 28 May & study. Related research on
financial education, indebtedness.
• DG MARKT: Evers & Jung Study mapping out financial literacy
schemes in the EU (November 2007)
Commission Communication on
Financial Education
COM(2007)808 of 18 December 2007
To promote financial education across EU:
• Importance and benefits of financial education
• Basic principles for provision of high-quality financial
education schemes
• New Commission’s initiatives
Commission Communication on
Financial Education
Principles for financial education provision:
1.
Availability at all stages of life
2.
Targeting to meet the specific needs of consumers
3.
Inclusion in the school curriculum
4.
Raising general awareness on financial issues
Commission Communication on
Financial Education
Principles for financial education provision
(continued):
5.
Industry-led programs to be fair, transparent and
unbiased
6.
Empowering the teachers
7.
Promoting coordination at national and
international level
8.
Need for continuous evaluation
Commission Communication on
Financial Education
Principles for financial education provision:
“The Commission invites national administrations,
financial services providers, consumer organisations
and other stakeholders to develop national strategies
on financial education with appropriate financial
education programmes with regard to the above
principles for financial education.”
Commission Communication on
Financial Education
The Commission initiatives:
1.
Network of Practitioners - EGFE
2.
New module of Dolceta: providing tools for school
teachers
3.
Online database of financial education schemes
and research in the EU - EDFE
4.
Patronage to public and private actors organising
financial education events and conferences
Expert Group on Financial
Education (EGFE)
•
•
•
•
•
To (1) exchange best practices and (2) advise the
Commission
25 members selected from over 100 candidates (industry,
public sector, consumer organisations, academia). The list
published on the COM website
Experts acting in a personal capacity (no formal link to
institutions or organisations)
Six meetings planned during a 3 year mandate. Chair and
secretariat by the Commission. The first meeting planned on 7
October in Brussels
Observers invited from MARKT/H3, SANCO, EAC, EMPL,
FIN-USE, UNI-Europa Finance
Expert Group on Financial
Education (EGFE) - 2
Topics proposed for discussion by EGFE:
•
National strategies for financial education (1st meeting)
•
Financial education at school
•
How to educate consumers?
•
Preparing for retirement
•
Challenges for the industry (e.g. sales vs advice conflict)
•
Role of the EU and evaluation of COM initiatives
Dolceta Module 7: Financial
Literacy – Tools for Teachers
•
•
•
•
•
•
•
To provide materials for teachers to facilitate inclusion of
financial literacy in lesson programmes
Translated and adapted to circumstances for all MS – for
voluntary use
Sponsor: SANCO in cooperation with MARKT
Contractor: EUCEN, Network of over 200 universities in 43
countries
Expert and Design Teams: developing the content
National Development Teams: adaptations.
Started in April ’08. Launching planned for early 2010.
European Database for
Financial Education (EDFE)
•
•
•
•
•
Online “reference library” of financial education schemes
and research in EU Member States by all stakeholders
Based on 180 schemes from the Evers & Jung study
Information categorised by various criteria such as:
– provider
– geographical base
– subject
– target audience
– method of delivery
Fully searchable & regularly updated by registered users
Publication on the Europa website planned for November
European Commission
patronage
•
•
•
•
•
Information Note on patronage published on COM website
(under the Communication)
Offered to national/regional conferences and other events
which give visibility and impetus to the financial education
issues
Honorary support including a message, the right to use the
Commission emblem, participation whenever possible
No financial support possible at this stage
Applications to be addressed directly to DG Internal Market &
Services, Unit G1, taking account of the principles outlined in
the Commission Communication and including the necessary
details.
Financial education on EU
agenda
• Council Conclusions – adopted by Ecofin on
14 May 2008
“[ The Council] INVITES Member States to step up their efforts to
provide financial education to citizens, to increase citizens'
awareness of its importance in view of future challenges for
private finances (pension, health financing, housing finance) and to
give consideration to the usefulness of including financial literacy
in school curricula, bearing in mind the principles identified in the
Commission Communication, including training at all stages of life
and programmes targeting the specific needs of each group of
recipients, so that financial education consistently fulfils the criteria
of transparency and objectivity (…)”
Financial education on EU
agenda
• European Parliament - Iotova Report
(Protecting the consumer: improving consumer
education and awareness as regards credit)
– Rapporteur: Iliana Malinova Iotova (IMCO, PSE-BG)
– IMCO vote planned for 7 October; the plenary vote for November
• “[The Parliament] asks Member States (...) to establish a network
for financial education in which both the public and private sector
take part, and to encourage cooperation and dialogue between all
actors”
Financial education on EU
agenda
[The European Parliament]:
• Stresses the importance of establishing (…) the level of financial
literacy of any Member State
• Encourages Member States to include financial education in the
primary and secondary school general curriculum
• Encourages Member States to pay special attention to the
educational needs of pensioners and workers at the end of their
professional career
• Calls on the Member States to set up training programmes in
economics and financial services for social workers, since they are
in contact with persons at risk of poverty and/or excessive debt
Conclusions
• Financial education is above all a competence
of the Member States – they should work out
their national strategies
• 2008: implementation of the initiatives
announced in the Commission’s Communication
• Evaluation and reflection on future policy by
2010
Contact
Daniel Kosicki
European Commission
DG Internal Market and Services
Unit G1 - Financial Services Policy
Tel.: +32 (0)2 298 05 70
Fax: +32 (0)2 295 55 52
E-mail: [email protected]