2011年-FSB全球金融稳定委员会_Consumer_Finance_Protection_with_Particular_Focus_on_Credit_53页_469kb

Consumer Finance Protection with Particular Focus on Credit Summary

Core Content

This report, prepared by the Financial Stability Board (FSB) in collaboration with the OECD, focuses on consumer finance protection, particularly in the area of credit. It addresses the need for stronger consumer protection frameworks in light of the global financial crisis, emphasizing the importance of preventing over-indebtedness, ensuring transparency, and promoting responsible lending practices.

Main Points

1. G20 Mandate and Objectives

• The G20 requested the FSB and OECD to develop consumer finance protection policies, with the FSB focusing on financial stability and the OECD on high-level principles.
• The FSB report does not cover financial education or inclusion, as these are addressed by other initiatives.
• The report draws on responses from FSB members and information from international organizations like the OECD, World Bank, and FinCoNet.

2. Consumer Protection Frameworks

• Consumer protection is a key component of public policy across FSB member countries and is often enshrined in legislation or regulatory structures.
• Common elements include disclosure and transparency, financial education, fair treatment, and dispute resolution mechanisms.
• Some jurisdictions impose prudential limits on unsecured loans (e.g., Singapore, Hong Kong) to prevent over-indebtedness.

3. Challenges in Cross-Border Credit Protection

• While many countries require foreign credit providers to be licensed locally, some jurisdictions face challenges due to differences in regulatory systems.
• Canada noted that the use of foreign third-party service providers can lead to errors and non-compliance with local disclosure requirements.
• UK highlighted that the internet-based sale of credit products may lead to jurisdictional uncertainty.

4. Lessons from the Financial Crisis

• The crisis exposed weaknesses in consumer protection frameworks, particularly in non-bank entities and risk disclosure.
• Australia and Singapore demonstrated resilience due to strong regulatory frameworks and prudential requirements.
• The US Dodd-Frank Act restructured consumer protection functions into a single agency, the CFPB, to enhance accountability and oversight.

5. Reforms in Responsible Lending

• FSB members have implemented reforms to improve responsible lending practices, especially in the mortgage sector.
• The European Commission proposed a Directive on credit agreements related to residential property to enhance consumer protection and market efficiency.
• The UK FSA introduced the Mortgage Market Review, focusing on borrower affordability and responsible lending.
• The US CFPB is working on ability-to-repay assessments and minimum underwriting standards.

6. Product Intervention and Proactive Regulation

• A shift is occurring towards proactive regulation in the UK, where the FCA will take over consumer protection responsibilities.
• The FCA will focus on preventing consumer detriment by intervening earlier in the product lifecycle, challenging product design, and promoting competition.
• This approach moves away from reactive supervision at the point of sale to a more preventive and interventionist model.

7. Consumer Advocacy and Engagement

• FSB members have established formal processes to engage with consumer groups, ensuring that consumer perspectives are considered in policy development.
• France requires consultation with the CCSF (consumer advisory body) before adopting consumer protection recommendations.
• Russia has a permanent advisory council for consumer protection within its regulatory body.
• The UK OFT allows consumer bodies to submit super complaints and respond within 90 days.
• The US CFPB has formal advisory roles with consumer advocacy groups, including the Community Affairs Office and a Consumer Advisory Board.

Key Information

• Disclosure: Binding rules exist for product features and risks, but incentives and product suitability are less well addressed.
• Regulatory Models: FSB members use a range of models, including single agencies, twin peaks, and multiple agencies.
• International Coordination: The need for an international organization of consumer protection regulators to lead global efforts is emphasized.
• Gaps and Needs: Areas requiring more work include product suitability indicators, alignment of incentive compensation, and supervisory tools for consumer protection.

Conclusions

The report concludes that while progress has been made in strengthening consumer protection frameworks, further international coordination, institutional reform, and supervisory tool development are necessary to ensure financial stability and consumer rights. It also underscores the importance of consumer education and financial literacy as foundational elements for effective consumer protection, even though these are not directly addressed in the report.

Recommendations

1. Establish an international organization of consumer protection regulators to lead global efforts.
2. Strengthen institutional arrangements to ensure clear mandates, accountability, and regulatory independence.
3. Develop and implement supervisory tools to address gaps in product suitability, incentives, and transparency.