Financial Literacy Training Under the Spotlight

Department of Trade and Industry

R47 million will be required to implement financial literacy training as proposed in the Draft National Credit Amendment Bill.

The trade and industry department announced this during a briefing on responses to submissions on the specific clauses published for comment at the end of May 2018.

The draft bill aims to introduce financial literacy training.

According to the department, the envisaged amount could be funded from PDA interest, increase in registration fee and an increase in the departmental allocation.

The National Credit Regulator will appoint internal trainers and Provincial Consumer Protection Offices will be approached to determine capacity to assist with training of consumers.

Over the next six months, the department plans to review registration fees, put agreements in place with financial literacy training, consult with national treasury, develop training materials and ensure issues such as accessibility, simplicity, literacy and language translations are taken into consideration.

As regards mandatory credit life insurance, the department will, in conjunction with the National Credit Regulator, treasury and the Financial Sector Conduct Authority, approach the industry to come up with a unique product specifically designed for debt intervention applicants.

Meanwhile, the Broad-Based Black Economic Empowerment (BBBEE) Commission has called on government and the private sector to increase the number of women on boards and increase procurement from businesses that are at least 30% black women owned.

The call follows the release of a report on the status of BBBEE transformation for 2017.

“The report results show that 38% (male – 20%; female – 18%) of JSE listed companies’ board control is held by black people, which number includes black foreign nationals who do not meet the definition of black people as per legislation.”

Sabinet Cape Town Office

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