News
Mexico: Financial consumer protection will be at the heart of our G20 presidency
14 Oct 2011
Mexico pledges G20 support for the establishment of a
new international financial consumer protection
agency.
Consumers International has welcomed a
statement made by Deputy Finance Minister of Mexico, Mr Gerardo
Rodriguez, that Mexico will use their presidency of the G20 to
support the establishment of a new international financial consumer
protection agency. Mexico will assume the presidency following the
G20 leaders' summit in November 2011.
At a high level meeting on financial consumer protection hosted by
the OECD and the French presidency of the G20, Mr Rodriguez gave
clear support for a new international body that could include
standard setting and the ability to assess country-level
observance.
The agency could evolve out of FinCoNet, a loose network of
national financial consumer protection agencies.
The commitment from the Mexican Deputy Finance Minister followed
a presentation from Mr Jim Guest, President of Consumers
International, which concluded with a call for such an organisation
to be established.
International financial consumer protection agency
In his presentation, the Mexican Deputy Finance Minister said
that there was now international consensus on the importance of
financial consumer protection and that the issue requires more
attention going forward, partly in recognition of the large risk
that its absence poses to the financial system. This justifies
'widening the scope of what has been done' and developing 'more
specific guidelines that can be checked on a regular basis.'
Mr Guest said "CI warmly welcomes the commitment that has been
made by the Mexican Deputy Minister. The establishment of an
effective international financial consumer protection agency with
the power to set standards and review implementation is a long
standing call from the international
consumer movement. This is a crucial step in translating high
level principles into actions that will make a real difference for
consumers."
Financial products need clarity
The meeting was opened with a presentation from Minister
Francois Baroin, the French Minister of Finance who criticised the
cynicism and lack of accountability that led to the sub prime
mortgage crisis and other financial crises around the world.
Minister Baroin committed to raising three points in the G20
finance ministers meeting including that consumers needs should
trigger the origin and design of financial products, that products
should be comprehensible to consumers (and providers) and should
establish rules to deal with the information asymmetry between
providers and consumers.
Other speakers at the OECD / G20 event included a number of
finance ministers, central bankers and representatives from
consumer organisations and the financial services industry. The
event is taking place ahead of the G20 finance ministers meeting,
where a new set of OECD high level principles on financial consumer
protection will be considered. The G20 leaders will also consider a
report on enhancing protection in consumer finance when they meet
in November.
CI has been campaigning for international action to support
financial consumer protection since the launch of the Consumers for Fair Financial Services
campaign in 2010.