miles larbey - asic - financial literacy
TRANSCRIPT
Financial Literacy
Miles Larbey
Senior Executive Leader, Financial Literacy
Credit Law Conference9 October 2015
What is financial literacy?
“Financial literacy is a combination of financial knowledge, skills, attitudes and behaviours necessary to make sound financial decisions, based on personal circumstances, to improve financial well-being.”
• Empowers people to understand the financial landscape, mange money and financial risks effectively, achieve their financial goals, and avoid financial pitfalls
• Increased complexity and rapid evolution of financial products and services
• Greater responsibility for financial planning
ASIC’s role
• ASIC is the conduct and consumer protection regulator for financial services
• Supports ASIC’s strategic priority to promote financial consumer and investor trust and confidence
• ASIC is the Australian Government agency responsible for financial literacy
National Financial Literacy Strategy
• Launched on 1 August 2014
• Result of 12 months consultation with over 200 stakeholders
• Reflects international best practiceand latest research
• A national roadmap and frameworkfor action
Five Strategic Priorities
moneysmart.gov.au
• Impartial and trustedfinancial guidance and tools
• About 600,000 Australiansvisit every month
• Online tools, mobile appsand guidance tailored forlife events
• Optimised for mobile and tablets
• Unclaimed Money search
• Financial Advisers Register
Example: ‘rent vs buy’ calculator
• Consumer leases an ongoing area of regulatory focus for ASIC
• July 2015, New calculator launched on ASIC’s MoneySmart website to help consumers easily calculate the cost of a consumer lease and compare to alternatives
• Developed in collaboration with Commonwealth Department of Human Services
Example: interest-only mortgages
• In August 2015, ASIC published results of probe into interest only mortgages (REP 445)
• Report made a number of recommendations for lenders
• ASIC has also developed resources for consumers:
– interest-only mortgage calculator to compare options
– infographic depicting the consumer journey
ASIC’s MoneySmart Teaching program
• Australian Government financial literacy in schools program, in partnership with States and Territories
• Resources for schools linked to Australian Curriculum
• Focus on teacher professional development – 14,000 teacherstrained so far
• New resources for students invocational education & training
Tracking progress
• Annual Report
• Tracking progress against the strategic priorities
• Case studies profiles as good practice
• Showcase new and innovative approaches
• Financial Literacy Community of Practice
• Australian Financial Attitudes and Behaviour Tracker
How can you support financial literacy?
• Organisations can sign up as Supporters of the National Strategy – over 30 organisations already done so
• Join the Community of Practice – over 800 members and growing – and give a presentation
• Add a link to ASIC’s MoneySmart and promote via your networks, channels and newsletters – moneysmart.gov.au
• Join our Facebook or Twitter community – share via social media
• Promote ASIC’s MoneySmart e-newsletter
• Support financial literacy in your local school, club, community organisation etc
• Contact ASIC – [email protected] – to discuss opportunities