Consumer Protection Regulation and Supervision

As the official rule-maker and final arbiter, government action in the form of consumer protection regulation and supervision is essential to reinforce industry and consumer actions by creating and enforcing clear ground rules to achieve transparency, fair treatment, adequate attention to evolving customer risks, and effective recourse. CGAP has a growing track record of successful engagement with governments in emerging markets and developing economies to help them design pragmatic consumer protection regimes that serve the interests of low-income and inexperienced consumers and can be implemented by financial authorities with relatively limited resources and capacity. CGAP has partnered with Central Banks and other financial supervisors to develop guidance on the key “building blocks” of disclosure, responsible lending, and recourse. CGAP has also offered preliminary guidance on protecting customers of early “branchless banking” business models.

In many countries, consumer protection laws and regulations are very new or are still in the drafting stages. CGAP has developed practical guidance on how to get started in supervising industry practices and monitoring the market for emerging risks to lower-income and more vulnerable consumers. Given the limited human and financial resources available to consumer protection regulators and supervisors in most countries, CGAP’s work in this area seeks to help financial service providers focus on the most important priorities for improving transparency and protecting base-of-pyramid financial consumers and adopt improved measures based on evidence. CGAP has developed cost-effective consumer research tools to help our policy clients diagnose problems and test solutions. Application of emerging insights from the growing body of behavioral research also helps ensure better real-world outcomes for consumer protection regimes



04 August 2015
This paper draws from research conducted in Brazil, Colombia, Kenya, Mexico, Pakistan, Peru, the Philippines, Tanzania, and Uganda to look at how providers identify, classify, and manage risks related to the use of agents and how supervisors assess providers.
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English (49 pages) | French (55 pages)
13 December 2013
This Focus Note explores innovative ways for policy makers and providers to raise awareness and improve accessibility of recourse mechanisms, tailor recourse to suit new products and delivery channels, and proactively use recourse data to address systematic problems in BoP markets.
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English (28 pages) | French (28 pages) | Spanish (28 pages) | Russian (28 pages)
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iBook (392.25 KB) | Kindle (1.01 MB)

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