FinCoNet (International Financial Consumer Protection Organisation)
FinCoNet (the International Financial Consumer Protection Organisation) is an international organisation of supervisory authorities which promotes sound market conduct and strong protection of banking and credit service consumers. It does so through efficient and effective financial market conduct supervision and enables conduct supervisors to share information and mutually benefit from their experience.
In July 2021, FinCoNet published its Financial Product Governance and Culture report, the result of the joint work by its members and by members of the G20/OECD Task Force on Consumer Protection. The report is based on the responses of 29 supervisory authorities to a survey designed to gain insight into policy developments in this area, the tools available to supervisors in each jurisdiction to assess institutions’ product governance and the importance of corporate culture in different countries around the world.
- “Product governance” refers to the systems, procedures and controls in place in financial services firms to design, approve, market and assess financial products through their life cycle to ensure that they meet consumers’ interests and objectives and the relevant regulatory requirements. It is about putting the consumer at the centre of the business and of decision-making.
- “Financial culture” refers to the values and norms that drive behaviours and decision-making within the organisation. It is vital for the viability of these institutions, as they depend on the confidence of consumers. The report has found a strong link between good corporate culture and product governance: institutions with good culture are those that focus on consumer needs and delivering products in a fair and transparent manner.
Consumer financial literacy and institutions’ disclosure requirements are important to assist consumers in making informed decisions, but the increasing complexity of products and the wide range of distribution channels makes it necessary for institutions to align the marketing of their products and services with the needs and characteristics of the consumer.
You can read the full report here.