Canadians and Their Money

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Financial Services ProvidersCanadians deal with many different types of financial services providers, among them:• Banks, credit unions and caisses populaires;• Trust companies;• Securities dealers, mutual fund companies and distributors;• Insurance companies (life and health, and property and casualty);• Finance and leasing companies;• Independent advisors, financial planners, insurance brokers and accountants; and• Alternative banking facilities (e.g., payday loan providers, cheque-cashing outlets).[TRANSLATION]“The financial services industry shouldalso be obliged to provide consumerswith information in simple and clearlanguage, and to disclose theinformation necessary to make keydecisions. Employees should receiveongoing training so as to be able toclearly explain the features of theproducts they are offering.”– Option consommateursFinancial services providers attempt to address the financialliteracy needs of their clients by offering a wide range of toolsand resources. These include customized advice and guidance;printed brochures and newsletters; websites; seminars andworkshops; and interactive calculators. Trade groups such asthe Canadian Bankers Association, the Canadian Life andHealth Insurance Association and the Investment FundsInstitute of Canada support the efforts of their members throughdedicated consumer education campaigns.Our research suggests that the level of attention and commitment to financial literacyand consumer protection is uneven across the financial sector and its institutions.Although informational materials are readily available to consumers, much of thismaterial is complex and is not presented in simple, accessible language. In ourjudgment, financial services providers have a responsibility to ensure that theirinformational materials are developed, written and designed to be readily understood.Transparency is key. It is vital that institutions have well-trained front-line and advisorystaff that can provide accurate information and helpful guidance to customers.Credit Counselling CommunityFor more than 40 years, non-profit credit counselling service agencies have beenworking with individuals and families who are struggling to make ends meet. They22TASK FORCE ON FINANCIAL LITERACY – I. Shared Responsibility
play a crucial role in providing financial education and debt management advice,often helping individuals and families to avoid insolvency. With their experience indealing with people struggling with debt management, they can play a significantrole in strengthening the financial literacy of Canadians.Canadians must be better informed about the services that are offered by creditcounselling agencies and the differences between the non-profit and for-profitagencies involved. With increased awareness, Canadians will be better ableto ask the right questions when seeking the services of a credit counsellor.Employers and Labour OrganizationsEmployers and labour organizations have access to millions of Canadians andlong experience in imparting information to employees on financial matters suchas pension and retirement plans. As part of the National Strategy, we believe thatemployers and labour organizations have a responsibility to ensure that theseplans are well explained and easy to use so that employees can fully understandand optimize them.Voluntary SectorIn delivering financial literacy initiatives and reaching out to the most vulnerableCanadians, we recognize the important role of the voluntary sector, which comprisescommunity service agencies, charitable groups and national umbrella organizations.Research conducted for the Financial Consumer Agency of Canada 7 found that thevast majority of financial information and learning products and services that are aimedat, or accessible to, low-income Canadians are provided by the voluntary sector.Voluntary organizations deliver programs and services on behalf of governments.In our judgment, when these organizations are being funded to deliver financialliteracy information, they should ensure that it is of high quality and relevant tothe Canadians they serve.7 Robson, J., & Kuckacka, P. (2005). “Research on the Supply of Financial Literacy Products and Services inCanada.” Toronto: Social and Enterprise Development Innovations (SEDI).TASK FORCE ON FINANCIAL LITERACY – I. Shared Responsibility 23
Page 1 and 2: Report of Recommendations on Financ
Page 3 and 4: Table of ContentsAcknowledgements..
Page 5 and 6: AcknowledgementsContributions of ma
Page 7 and 8: www.financialliteracyincanada.comTh
Page 9 and 10: touches all residents, our recommen
Page 11 and 12: 3. Lifelong LearningWe believe that
Page 13 and 14: ensure, at the highest level, accou
Page 15 and 16: • Navigate the ever-changing fina
Page 17 and 18: Figure 1: National Average Scores,
Page 19 and 20: Figure 3: Ratio of Household Debt t
Page 21 and 22: Figure 4: Key Results from the 2003
Page 23 and 24: Figure 6: National Strategy on Fina
Page 25: GovernmentsGovernments are uniquely
Page 29 and 30: Figure 7: Shared Responsibility - M
Page 31 and 32: term. Further, the mandate should n
Page 33 and 34: • Enable stakeholders to be activ
Page 35 and 36: Figure 9: Life EventsReceivingunexp
Page 37 and 38: Figure 10: Essential Skills - Money
Page 39 and 40: We commend those authorities who ar
Page 41 and 42: Governments may consider leveraging
Page 43 and 44: considering the purchase of a finan
Page 45 and 46: “lunch and learn” seminars and
Page 47 and 48: The Role of Professional AdviceThe
Page 49 and 50: In some cases, programs reach many
Page 51 and 52: Student Loans Directorate at the De
Page 53 and 54: The UAS is also “designed to incr
Page 55 and 56: Throughout the public consultation
Page 57 and 58: since 1982. His report, entitled
Page 59 and 60: Take-up of Government BenefitsEarli
Page 61 and 62: Programs for SavingIn our deliberat
Page 63 and 64: programs. We encourage, as a supple
Page 65 and 66: When it comes to online learning, h
Page 67 and 68: Public Awareness CampaignCreative a
Page 69 and 70: Fraud Prevention and EducationWe pr
Page 71 and 72: Self-Assessment ToolStudies and sur
Page 73 and 74: contests could also be used to fost
Page 75 and 76: ear a responsibility to communicate
Page 77 and 78:
The federal, provincial and territo
Page 79 and 80:
4.5.Planning ahead (thinking about
Page 81 and 82:
students have acquired some of the
Page 83 and 84:
and offer funding and professional
Page 85 and 86:
To that end, the Government should
Page 87 and 88:
Important research gaps remain, how
Page 89 and 90:
Conclusion: The Way ForwardSuccess
Page 91 and 92:
AppendicesAppendix A: Summary of Re
Page 93 and 94:
19. The Task Force recommends that
Page 95 and 96:
Appendix B: Members of the Task For
Page 97 and 98:
2520151050Most Canadians are making
Page 99 and 100:
2520151050Few Canadians keep themse
Page 101 and 102:
Appendix E: Selected BibliographyTh
Page 103 and 104:
Ipsos Reid. (2009). CSA Investor In
Page 105 and 106:
Standing Senate Committee on Bankin
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