publication . Article . 2017

Balancing Responsibilities – Financial Literacy

Philip Stoop; Gail Pearson; Michelle Kelly-Louw;
Open Access Afrikaans
  • Published: 01 Mar 2017 Journal: Potchefstroom Electronic Law Journal (issn: 1727-3781, Copyright policy)
  • Publisher: North-West University
Abstract
<jats:p>In Australia there is an obligation to promote the informed participation of financial consumers while in South Africa there is an obligation to educate consumers. The Australian obligation is concerned with the financial system as a whole while the South African obligation has generally been focused on general financial education as a tool to promote financial inclusion. There is no obligation for consumers to attain a minimum standard of literacy in credit or finance generally. Financial literacy is one among a number of strategies directed towards inducing changes in consumer behaviour. It sits between the old regulatory model which relies on disclosu...
Subjects
ACM Computing Classification System: ComputingMilieux_LEGALASPECTSOFCOMPUTING
free text keywords: Financial literacy, financial inclusion, financial education, consumer education, disclosure of information, legal obligation to educate consumers, legal obligation to disclose information, Law in general. Comparative and uniform law. Jurisprudence, K1-7720, Business, Literacy, media_common.quotation_subject, media_common, Financial services, business.industry, Public relations, Financial management, Social responsibility, Obligation
Related Organizations
47 references, page 1 of 4

* This article is based on a paper delivered by Professor Gail Pearson as part of a seminar organised by the Department of Mercantile Law, University of South Africa as part of their community engagement project entitled the "Responsible Use of Credit" held on 28 September 2015 at the University of South Africa, Pretoria, South Africa.

1 See ss 3(e)(i) and 16(1)(a) of the National Credit Act 34 of 2005 (South Africa) (the NCA); s 3(c) of the Financial Services Board Act 97 of 1990 (South Africa) (FSB Act); s 1(2)(b) of the Australian Securities and Investments Commission Act, 2001 (Cth); s 760A(a) of the Corporations Act, 2001 (Cth) (Australia).

2 Section 3(e)(i) read with s 16(1)(a)-(b) of the NCA.

3 Section 3(c) of the FSB Act.

ASIC became responsible in 2008. See ASIC 2016 https://www.moneysmart.gov.au/?referrer=understandingmoney.gov.au and also ASIC 2016 http://www.financialliteracy.gov.au/.

See FCA 2014 http://www.financialcounsellingaustralia.org.au/Corporate/News/14-ofAustralians-won't-understand-this-press-rele.

FOS 2014 see https://www.fos.org.au/custom/files/docs/fos-submission-to-shaping-anational-financial-literacy-strategy-for-201416.pdf; FOS 2014 http://fsi.gov.au/files/ 2014/04/Financial_Ombudsman_Service_attachment_1.pdf.

See ASIC 2016 http://www.financialliteracy.gov.au/supporters/business-and-industry.

OECD 2014 http://www.oecd.org/daf/fin/financial-education/guidelines-private-notfor-profit-financial-education.pdf.

See MoneyMinded date unknown http://www.moneyminded.com.au/?page_id=350.

74 See Finmark Trust 2005 http://www.finmark.org.za/wp-content/uploads/2016/01/ Note_finLit_SA_2005.pdf 2.

75 Finmark Trust 2005 http://www.finmark.org.za/wp-content/uploads/2016/01/Note_ finLit_SA_2005.pdf 2.

76 It was issued in terms of s 9 of the Broad-based Black Economic Empowerment Act. For a copy of the Code see Gen N 997 in GG 35914 of 26 November 2012.

77 See Cover 2013 http://www.cover.co.za/news/10-years-on-the-financial-sector-codelaunched.

78 See FSB 2012 https://www.fsb.co.za/Departments/consumerEducation/Documents/ Financial%20Literacy%20Booklet%202012.pdf.

47 references, page 1 of 4
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