Establishing a Financial Consumer Protection Supervision Department : Key Observations and Lessons Learned in Five Case Study Countries
This technical note is intended to assist policymakers and regulators seeking to establish a financial consumer protection supervision department (FCPSD) within the main financial regulatory body of a country. Concrete, practical information and le...
| Main Authors: | , , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/219651482403828775/Establishing-a-financial-consumer-protection-supervision-department-key-observations-and-lessons-learned-in-five-case-study-countries-technical-note http://hdl.handle.net/10986/25894 |
| Summary: | This technical note is intended to
assist policymakers and regulators seeking to establish a
financial consumer protection supervision department (FCPSD)
within the main financial regulatory body of a country.
Concrete, practical information and lessons are drawn from
the experiences of five countries: Armenia, the Czech
Republic, Ireland, Peru, and Portugal - all of which have
been operating a successful FCPSD for at least five years.
The note covers the key aspects of the design process:
supervisory agenda, organizational structure, supervisory
activities, relationship with prudential supervision, and
staffing needs. While there is no unified, orderly approach
to establishing an FCPSD, many useful observations can be
made from the common obstacles, including a lack of internal
support, perceived conflicts of interest with prudential
supervision, capacity constraints, and the inherent
difficulties of starting up operations for the new (and
potentially very broad) topic of financial consumer
protection. How an FCPSD is established is highly dependent
on country context: legal framework for the financial
sector, organization of the main financial regulator,
political priorities, current stage of development of
financial markets, major consumer protection concerns, and
other important factors. A comparative table summarizing the
main elements in the establishment of FCPSDs in case study
countries can be found in annex A. |
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