The Financial Sector Conduct Authority (FSCA) is set to implement a financial education commitment charter, requiring financial institutions in South Africa to outline their spending plans for consumer education. The charter will also mandate adherence to international standards for consumer education and prioritise customer protection. Currently, financial institutions are expected to allocate 0.4% of after-tax profit to financial education, but the new charter will require written plans on how this is spent. However, the FSCA wants clearer accountability on how these funds are spent. According to the FSCA, the move aims to reduce financial vulnerability as data shows less than half of South Africans can withstand financial setbacks, with the national savings rate reaching a record low.
