INTERNATIONAL CONFERENCE ON INVESTOR EDUCATION GOA, INDIA 3 4 February 2012

Transcription

1 INTERNATIONAL CONFERENCE ON INVESTOR EDUCATION GOA, INDIA 3 4 February 2012 Integrating Investor Education Initiatives in the SA National Financial Education Agenda Lyndwill Clarke The FSB oversees primarily the non banking financial services industry in South Africa in the public interest Mandated by the 2000 amended FSB Act No. 97 of 1990, to Promote programmes and initiatives by financial institutions and bodies representing the financial services industry to inform and educate users and potential users of financial products and services. Established CED and developed CE strategy which was approved by the FSB Board in

2 In SA the target market for CE is all people in SA This includes current investors as well as prospective investors The idea is to inform and educate consumers so that they can make effective choices; also, to attract new consumers of financial products and services More complex financial markets Different government departments and regulators administer various pieces of consumer protection legislation Low levels of understanding of financial terminology Secondary effects of global financial crisis 2

3 2% of South African adults do not use financial products formal or informal 72% of adults say they are not saving 28% of adults say they get money from friends and family 8.4 million out of 18 million credit active consumers have impaired credit records FinmarkTrust 2009 Formal and dcommunity education Budgeting Saving Debt management Fraudulent schemes Insurance, retirement, investment, financial i advisory di services Rights & responsibilities Recourse 3

4 The FSB s Discretionary Fund The Foundation Partnerships Develop /refine programme Implement programme Face to face workshops Online e learning, website under construction Integrate into formal education Monitor & evaluate Monitor & evaluate Refine programme Print media newspapers, magazines, professional publications Electronic media radio, TV, DVDs 4

5 Commuter and Shopper ± 100k Taxi and train stations, Malls Media Campaigns ±10M Radio (National + Community) & TV Community workshops/presentations/seminars 10k Publications (Newspaper, magazines, brochures) Employee wellness Money in Action ± 1000 teachers CD ROM Based Managing your Money teachers Specific to subject Math Literacy Financial Guide for Youth FET Colleges and out of school youth Career exhibitions Mostly grade 12 learners starting a new career 5

6 The JSE/Liberty Investment Challenge allows learners to buy and sell virtual securities on the JSE and to manage a virtual portfolio of R ($ ). Teach Children To Save (TCTS) campaign Volunteers from the financial sector exchange their boardrooms for classrooms SA Curriculum CAPS 40% financial literacy in Economic and Management Sciences. Important for accountability purposes and to correct any problems with a project The FSB includes a M&E component in each of its project proposals; each project is fully evaluated The FSB has produced a guide to M&E; can be found on our website consumer education department

7 OECD Pilot SA Base Line Study Will be used to inform National (Risk Based) Strategy Savings account ATM card Pension fund Mzansi account Stokvel / savings club Credit Card Post Office savings account Education policy / plan Current / Cheque account Keep cash / savings at home Provident fund Debit card / Cheque card Fixed deposit bank account Investment / savings policy Retirement annuity Garage / petrol card Home loan from big bank Informal money guard Shares on stock exchange Savings book at bank Unit trusts None of the above Heard of products Currently holds 8 Awareness Relatively good awareness of very basic bank products; low awareness of other formal products such as shares and unit trusts. Product holding Huge disparity between knowledge and holding of products 24% own none of the list of investment and savings products Significant shares have banking products, but relatively low holding of other products Large disparities by race, education, work and income status 7

8 Trust in different sources to provide good financial advice by living standard level (% of cases) Two most trusted sources of advice Bank or banker Friends and Family Church Independent broker / financial advisor Insurance company TV or radio advertisement Someone in community with a good education Government Newspaper Employer or work colleague Informal associations (e.g. stokvels / savings clubs) Moneylender / mashonisa Low Medium High Most trust in banks, and family/friends for all groups Poor considerably more trusting of government, informal associations, friends and family, and tv/radio than the wealthy. Wealthy vest more trust in independent brokers / financial advisors than the poor LYNDWILL CLARKE Lyndwill.Clarke@FSB.co.za 1 8