FECIF Board Member and Regional Manager of the ANASF financial education programme
The social value of financial education
If I consider my personal experience as a financial advisor and, more generally, the provision of investment services to citizens, I can envisage two concepts for the future of our professional activity: investor protection and financial education. On the one hand, investor protection underpins trust in the financial system as a whole; in this sense, the rules applying to our activity play a key role, especially if we consider the incoming entry into force of MiFID II (January 3rd 2018). On the other hand, education means fostering financial literacy and making citizens feel engaged in their investment decisions. This is particularly true for the young, i.e. tomorrow’s savers.
Financial advice has both an economic and a social value. Financial education, being pivotal in delivering this social value, can be described as a process which enables the citizen to enhance her/his knowledge of financial concepts and products, understand the risk-return trade-off and find the most suitable solutions.
I believe that all relevant stakeholders (European and national authorities, investment firms, financial advisors and their associations) should give great prominence to the need to improve...