Abstract:
This paper seeks to share some insights on the regulatory aspects of the
promotion of financial education and financial inclusion to enhance
consumer protection in South Africa. In recent years, policymakers in
different countries, including South Africa, have made various efforts to
regulate financial inclusion and integrate financial consumers into the
financial sector. Similarly, policymakers and other relevant stakeholders
have made efforts to promote financial education to empower financial
consumers to make sound financial choices and decisions.
Notwithstanding these efforts, the promotion of financial education and
financial inclusion has been done in isolation, overlooking the policy
synergies between these objectives and/or financial sector outcomes in
enhancing consumer protection in South Africa. Given the recent COVID-
19 pandemic, both financial education and financial inclusion have
become increasingly important policy considerations to negotiate the
chasm from the challenges that financial consumers faced before the
pandemic and move towards safeguarding the economic interests of
financial consumers post-pandemic. Accordingly, this paper explores the
interrelationship between the effective promotion of financial education
and financial inclusion to enhance consumer protection. Moreover, this
paper examines the adequacy of the regulation of financial education and
financial inclusion under the National Credit Act 34 of 2005 (NCA); the
Consumer Protection Act 68 of 2008 (CPA), the Financial Sector Regulation
Act 9 of 2017 (FSR Act) and the proposed Conduct of Financial Institutions
Bill (CoFI Bill) in relation to strengthening consumer protection. Put
differently, this article focuses on the regulatory nexus of the promotion of
financial education and financial inclusion to enhance consumer
protection in South Africa. In the end, this article will provide some
recommendations and enforcement approaches that could be
incorporated into the regulatory framework of the promotion of financial
education and financial inclusion to enhance consumer protection in
South Africa.
Description:
This article was initially presented at the 2nd Annual International
Corporate and Financial Markets Law Conference at the North-West
University, Faculty of Law, on 27-28 October 2022.