Raising the Benchmark: Updating the G20/OECD High-Level Principles on Financial Consumer Protection

Financial consumer protection matters to everyone. Whether shopping online, taking out a loan or insuring a home or car, laws, regulations and other measures exist to ensure consumers are treated fairly and to protect them from harm. And in the current challenging economic conditions, they have never been more important. Banner: Shutterstock/Mohammad Iqbal Tangkas
Raising the Benchmark: Updating the G20/OECD High-Level Principles on Financial Consumer Protection
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Financial consumer protection matters to everyone. Whether shopping online, taking out a loan or insuring a home or car, laws, regulations and other measures exist to ensure consumers are treated fairly and to protect them from harm.

By addressing asymmetries in information and market power between firms and consumers and promoting fair treatment, financial consumer protection policies underpin confidence in the financial system and support the financial inclusion and resilience of individuals and households. And in challenging economic conditions, such as those currently facing many people around the world with increasing costs of living, financial consumer protection has never been more important.

The G20/OECD High-Level Principles on Financial Consumer Protection are the international standard for effective and comprehensive financial consumer protection policy frameworks. The Principles were developed after the financial crisis of 2008, and were endorsed by G20 Leaders in November 2011 and adopted by OECD Governments in the form of a Recommendation in July 2012. The Principles are included in the Financial Stability Board (FSB) Compendium of Standards, and referenced in the G20 Financial Inclusion Action Plan.

All G20 countries, OECD Members and FSB jurisdictions have adopted the Principles, as have many other countries and jurisdictions seeking to establish or enhance their financial consumer protection frameworks.

The Principles provide guidance for policy makers and public authorities, covering topics such as the role of oversight bodies; fair and equitable treatment for consumers; disclosure and transparency; responsible conduct; competition; data protection; protection of consumer assets; and complaints handling and redress. All G20 countries, OECD Members and FSB jurisdictions have adopted the Principles, as have many other countries and jurisdictions seeking to establish or enhance their financial consumer protection frameworks.

During the course of 2021/22, the Principles have undergone a comprehensive review. The review was conducted by the G20/OECD Task Force on Financial Consumer Protection, in collaboration with the Global Partnership on Financial Inclusion. The objectives of the review were to assess the implementation of the Principles and evaluate their ongoing importance and relevance. In addition, the review was intended to identify policy developments or new areas that have emerged over the last ten years that warranted updates to the Principles.

All participating jurisdictions and stakeholders confirmed that the Principles continued to be of importance and relevance in shaping financial consumer protection frameworks around the world.

All G20 countries, 35 OECD Members, all FSB jurisdictions and ten other countries participated in the review process, as well as inputs gathered from consumer and business representatives. The report on implementation assessment found that the Principles had generally been well and widely implemented. All participating jurisdictions and stakeholders confirmed that the Principles continued to be of importance and relevance in shaping financial consumer protection frameworks around the world.

More on the Forum Network: Being Poor Means Paying More: Understanding low-income lives to design public policies that work for consumers by Ira Rheingold, Executive Director, National Association of Consumer Advocates
More on the Forum Network: Being Poor Means Paying More: Understanding low-income lives to design public policies that work for consumers by Ira Rheingold, Executive Director, National Association of Consumer Advocates
Being poor in the United States is even more expensive during inflationary times. If we are to create a more equitable economy we need to first understand why it is so expensive to be poor.

That said, the review found that there were a number of policy developments or new areas that should be reflected by way of updates to the Principles, to ensure they continue to reflect global best practices and are forward looking. These include for example:

  • The issues, risks and opportunities for financial consumers associated with digitalisation and technological advances, reflecting global trends towards ever greater use of digital financial services. For example, according to the 2022 GSMA State of the Industry Report on Mobile Money, in 2021 the number of registered mobile money accounts reached 1.35 billion globally, up 18% from 2020 and ten times more than there were in 2012. Benefits include reduced costs, improved efficiency and the potential for greater access to financial products; risks include greater exposure to online scams, or new forms of exclusion for those without access to technology or with low digital capability.
  • The issues, risks and opportunities for financial consumers associated with sustainable financial products and services. As a relatively new and growing area, there is increasing consumer demand for financial products that provide them with the opportunity to align their personal values and priorities regarding the environment, government and society with their financial products. At the same time, new risks have emerged such as lack of consumer understanding and the risk of “greenwashing”.
  • Lessons from the response to the COVID-19 crisis, which saw an acceleration in the use of digital means of transactions as well as circumstances in which many consumers experienced vulnerability and financial hardship. For example, research conducted by the OECD found that, of those with data available, 95% of participating jurisdictions around the world saw an increase in digital payments as a percentage of the volume and value of total payments. The same research found that reduced financial resilience of consumers, difficulty in meeting financial commitments and increased vulnerability to financial scams and fraud were the top risks to financial consumers associated with the pandemic.

In light of these findings, the Principles have been updated via a comprehensive and consultative process, including public consultation. The updated Principles were endorsed by G20 Leaders at the Bali Summit 15-16 November 2022 and adopted by OECD Governments on 12 December 2022, as a revised Recommendation of the Council.

With the benefit of these updates, the Principles continue to reflect global best practices and are forward looking.

Building on the solid foundation of the existing Principles, key updates in 2022 include:

  • new Principles on “Access & Inclusion” and “Quality Financial Products”
  • new cross-cutting themes on Digitalisation, Sustainable Finance and Financial Well-being
  • reflecting lessons from the response to the COVID-19 pandemic, including enhanced protections for consumers who may be vulnerable

The updated Principles, including the key updates, are illustrated in below:

The G20/OECD High-Level Principles on Financial Consumer Protection. Text in green illustrates the key updates to the original Principles..

Text in green illustrates the key updates to the original Principles.

With the benefit of these updates, the Principles continue to reflect global best practices and are forward looking.

Policy makers and public authorities are encouraged to implement the updated Principles in their jurisdiction. They can be applied in all countries and jurisdictions and are cross-sectoral in nature. Non-OECD countries may decide to become a formal Adherent to the Recommendation to demonstrate their strong commitment to implement the Principles.




Visit the OECD website on the Principles for more information and contact the OECD Secretariat to find out about becoming an Adherent to the Recommendation.

Visit the OECD website on the Principles for more information and contact the OECD Secretariat to find out about becoming an Adherent to the Recommendation.

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