BSEC for ‘National Policy on Financial Education’

The financial literacy committee has recommended to make the financial literacy programme mandatory for every stakeholders in an effort to make investors literate for the sake of their investments.
The committee has also recommended a 'National Policy on Financial Education' through joint initiative of the government, ministries, and other regulators of the financial sector.
A four-member committee of the Bangladesh Securities and Exchange Commission (BSEC) made the recommendations in its report submitted to the commission.
"The BSEC will formulate rules and make the programme mandatory for every institution and use its resources to promulgate financial education," the committee said.
Mohammad Saifur Rahman, a BSEC executive director, is the convener of the committee.
BSEC executive director Mahbubul Alam and another BSEC director are the members of the committee, Md. Ohidul Islam is the member secretary of the financial literacy committee.
The securities regulator has undertaken the initiative of launching financial literacy programme as part of its master plan.
"One of the major impediments of our capital market is that our retail investors are not aware of the risks associated with the market. The most important way of investors' protection is to provide them financial education," the report said.
According to the report, the securities regulator will play the vital role of organising programmes, forming relevant committees and guiding in every steps as prime mover of the basic financial literacy programme.  
"To foster the financial literacy programme and introduce a National Policy on Financial Education, the government, ministries and other regulators of the financial sectors should come forward."
In its report, the committee has also recommended the possible roles and responsibilities of other stakeholders and professional bodies.
"As responsible organisations, the stock exchanges, depository and Central Counter Party (CCP) having big responsibilities to carry out the programmes in respect of spreading financial literacy throughout the country," the committee's report said.
The listed companies have also responsibility to educate their manpower in finance and company affairs and take part in funding programme.
"The market intermediaries should create separate departments for financial literacy and develop working groups," said the report of the BSEC committee.
According to BSEC committee, professional bodies such as Institute of Chartered Accountants of Bangladesh (ICAB), Institute of Cost and Management Accountants of Bangladesh (ICMAB), Institute of Chartered Secretaries of Bangladesh (ICSB) and other educational institutions like Bangladesh Institute of Capital Market (BICM), Bangladesh Institute of Bank Management (BIBM) and business schools have responsibilities to provide appropriate financial education in their study materials.
According to BSEC committee's recommendations, the rules on 'Investors Protection and Financial Literacy' will envisage different requirements such as disclosure for every prospectus, information document, product and service.
The committee's report has recommended the timeframes for implementing the financial literacy programme through three stages.
The short term goals will be implemented during 2016-17 targeting existing investors, employees of stakeholders, teachers and trainers, defense officers, judges, lawyers and journalists.
Midterm programmes will be implemented during 2018-19 and the target groups will be school, college, universities, civil and public servants, private sector officials, NGO employees, physicians, engineers and middle income group.
Long term programmes will be implemented during 2020-21 targeting the home makers, retired personnel, businessmen, workers and general public.
Meanwhile, the securities regulator has formed two committees involving the key stakeholders of the capital market to launch the nationwide Financial Literacy Programme.
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