issues while neglecting to close gaps in other areas. The recently created International Financial Consumer Protection Network (FinCoNet) is considering what role it could play in the development of international benchmarks for consumer protection in financial services.

**A clear set of internationally accepted practices on consumer protection in financial services would help build a robust global financial architecture.** Regulators have noted the pressing need for a set of guidelines of market conduct against which existing policies, laws and regulations, institutions and initiatives can be measured and assessed. Market conduct standards should complement—but not substitute for—rules regarding prudential supervision. Such a set of guidelines would be significant for any public debate on a national or international level since the discussion to date has suffered from the absence of a set of recognized guidelines against which existing rules or proposed changes could be measured. Well-developed and accepted guidelines are also very important tools when developing benchmarks for surveys of consumer protection and financial literacy levels.

**At the G-20 summit in Pittsburgh in September 2009, leaders noted the need to further strengthen protection of users of financial services as part of the global financial architecture.** The official statement from the summit noted that, “Far more needs to be done to protect consumers, depositors, and investors against abusive market practices, promote high quality standards, and help ensure the world does not face a crisis of the scope we have seen. We are committed to take action at the national and international level to raise standards together so that our national authorities implement global standards consistently in a way that ensures a level playing field and avoids fragmentation of markets, protectionism, and regulatory arbitrage.”<sup>24</sup> Strong consumer protection should be part of a strengthened global financial regulatory system.

**Several initiatives are underway worldwide to develop useful standards or benchmarks on consumer protection and financial education.** The European Commission is developing a "scorecard" on financial consumer protection, and in October 2008 the European Parliament released its report on measures to increase consumer education and awareness on credit and finance.<sup>25</sup> In July 2005, the Council of the Organisation for Economic Co-operation and Development (OECD) distributed a set of principles and good practices for financial education and awareness, followed by the release of good practices on financial education and awareness for insurance and private pensions in 2008, and for consumer credit, including mortgages, in 2009.<sup>26</sup> In 2010, the OECD plans also to release good practices on financial education and awareness relating to insurance intermediation. Also in March 2008 the OECD launched the International Gateway for Financial Education as a clearing house for financial education programs, initiatives and research world-wide, and in mid-2008, the OECD created the International Network on Financial Education to analyze and assess the effectiveness of financial literacy programs.

**The World Bank has contributed to the dialog on development of international benchmarks by preparing a set of Good Practices for Consumer Protection and Financial Literacy.**<sup>**27**</sup> The _Good Practices of Consumer Protection and Financial Literacy in Europe and Central Asia: A Diagnostic Tool_ have been produced and refined over the course of the assessments as a practical assessment tool to evaluate financial consumer protection regimes in nine countries in Europe and Central Asia. The Good Practices provide a template for systematic analysis of the laws, regulations and institutions involved in

> 24 Leaders’ Statement: the Pittsburgh Summit, September 24-25, 2009

> 25 European Parliament, _Report on protecting the consumer: improving consumer education and awareness on credit and finance_ (2007/2288 (INI)), October 14, 2008

> 26 OECD, _Recommendation on Principles and Good Practices for Financial Education and Awareness_ , _Recommendation of the OECD Council_ (July 2005); _Improving Financial Education and Awareness on Insurance and Private Pensions_ (2008); and _Financial Literacy and Consumer Protection: Overlooked Aspects of the Crisis, OECD Recommendation on Good Practices on Financial Education and Awareness relating to Credit_ (2009)

> 27 World Bank, Finance and Private Sector Department of the Europe and Central Asia Region, _Good Practices for Consumer Protection and Financial Literacy in Europe and Central Asia: A Diagnostic Tool_ , September 2009

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