Part of objective 2 of the capital markets union (CMU) action plan, action 7 aims to empower citizens through financial literacy.

Financial competence framework

In the 2020 CMU action plan the Commission committed to conducting by Q2 2021 a feasibility assessment on the development of a financial competence framework in the EU. A report published in April 2021 presented the results of the feasibility assessment and the way forward, which consisted in working with the OECD’s International Network on Financial Education on joint EU/OECD financial competence frameworks for adults and youth.

The joint work between Commission services and the OECD on the financial competence frameworks was kicked off in April 2021 with an official launch event in presence of H.M. Queen Máxima of the Netherlands, European Commissioner Mairead McGuinness, and OECD’s Deputy Secretary-General Masamichi Kono.

In January 2022, the joint EU/OECD-INFE financial competence framework for adults was officially published. The framework was developed in close collaboration with representatives of the Member States. The framework builds upon the existing G20/OECD INFE core competencies framework on financial literacy for adults and adapts it to the EU context. The framework integrates digital finance and sustainable finance competences as well as competences relevant for financial resilience.

The framework outlines key areas of competences pertaining to personal finance (e.g. planning a budget, investing, borrowing or preparing for retirement). The framework covers the knowledge/awareness, skills/behaviours and confidence/attitudes/motivation that individuals need to have in order to support their financial well-being throughout their lives.

The EU/OECD-INFE financial competence framework is made available to national public authorities and private bodies for their voluntary uptake in policies and educational tools. The new EU framework provides a common conceptual basis that could be used by national public authorities and stakeholders to inform the development of financial literacy policies and programmes in the EU, design learning materials and educational tools, identify gaps in the provision of financial education, and create tools to assess and monitor financial literacy levels.

The Commission services and the OECD will now start disseminating the joint EU/OECD-INFE financial competence framework for adults and facilitating its uptake amongst Member States and stakeholders, including through targeted exchanges in 2022. The objective will be to support the use of the framework in concrete policies, tools and educational materials, and to offer a platform for policy makers and stakeholders to exchange good practices and lessons learnt when taking up the framework.

The Commission services and the OECD will also now begin the work on the financial competence framework for children and youth. The framework is expected to be finished by 2023.

Extension of the principle enshrined in Article 6 of the Mortgage Credit Directive to relevant sectoral legislation

In the 2020 CMU action plan, the European Commission committed to assess the appropriateness of extending the principle enshrined in Article 6 of the Mortgage Credit Directive to relevant sectoral legislation, the objective being to promote learning measures that support the financial education of consumers, in particular in the context of retail investment.

This action will be further refined in the context of the retail investment strategy to be adopted in Q4 2022.

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