The draft National Consumer Financial Education Policy (NCFEP) places financial education at the centre of market conduct, with firms expected to integrate it into core business processes and demonstrate measurable outcomes.
Released by National Treasury for public comment on 10 April, the policy sets out a national framework to strengthen financial literacy, capability, and long-term financial well-being, and will underpin a revised National Consumer Financial Education Strategy (NCFES). Stakeholders have until 15 May 2026 to submit comments.
The draft policy does not stand alone. It forms part of a broader regulatory build-out that has taken shape over the past two years. In March, the Financial Sector Conduct Authority’s Conduct Standard for financial education came fully into force, introducing enforceable requirements for governance, design, monitoring, and reporting where institutions provide such initiatives.
Read: FSCA’s financial education Conduct Standard comes into force
At the same time, National Treasury and the FSCA have been advancing a Financial Education Commitment Charter to secure board-level accountability and industry-wide alignment. The policy is intended to anchor these developments within a coherent national framework, bringing together supervision, strategic commitment, and co-ordination, and signalling a shift toward a more structured, measurable, and outcomes-driven approach.
The policy is grounded in a persistent disconnect. Although access to financial services has expanded significantly – with more than 90% of adults participating in the formal system – financial literacy levels have remained largely unchanged at about 53%.
This suggests that access alone has not translated into improved outcomes.
Rather, access without capability can amplify vulnerability rather than improve outcomes.
The draft responds by shifting the focus from information provision to financial capability and behavioural outcomes, positioning financial education within the broader market conduct and consumer protection framework.
Financial education is positioned as a system-level intervention, not a supplementary initiative.
From education to conduct
A key development in the draft policy is its integration of financial education into the conduct framework, alongside Treating Customers Fairly (TCF) and the outcomes-based approach proposed under the Conduct of Financial Institutions (COFI) Bill.
Read: COFI Bill approved for submission to Parliament
This reframes financial education from a discretionary activity to one that is increasingly linked to customer outcomes and supervisory expectations.
Financial education is treated as part of market conduct, not an adjunct to it.
For financial advisers and intermediaries, this signals greater emphasis on client understanding, suitability and informed decision-making, with education becoming more closely embedded in advisory processes.
The policy also adopts a lifecycle-based approach, requiring financial education to be tailored across different stages of consumers’ financial journeys, from early engagement through to retirement.
A shift from spend to outcomes
The existing requirement under the Financial Sector Code to allocate 0.4% of net profit after tax to financial education remains unchanged. However, the policy places greater emphasis on how that spend is deployed.
Programmes will need to demonstrate:
- alignment with national priorities;
- efficient use of resources; and
- measurable impact.
The emphasis shifts from how much is spent to what the spend achieves.
This introduces a more outcome-focused lens, where scale alone is unlikely to be sufficient.
Beyond awareness
The draft policy also challenges the long-standing focus on awareness-based initiatives.
Awareness alone is no longer sufficient.
Despite widespread access to financial information, many consumers continue to struggle to apply that knowledge in practice – particularly when navigating complex products, managing debt, or engaging in digital financial environments.
The policy therefore prioritises financial capability, with a focus on decision-making and behaviour, particularly among more vulnerable segments.
Embedding education into the customer journey
Financial education is positioned across the product lifecycle, from onboarding through to ongoing servicing.
In practice, this means firms will need to:
- integrate educational elements into advice and distribution processes;
- improve the clarity and usability of disclosures; and
- support customers in making informed product choices.
Financial education is expected to form part of the advice value chain, not sit alongside it. It is expected to be embedded in the customer journey, not delivered in isolation.
This approach is intended to address persistent weaknesses in consumers’ ability to assess product suitability and make informed decisions.
Measuring impact
Although the policy does not prescribe specific metrics, it introduces a framework that places monitoring and evaluation (M&E) at the centre of financial education.
Firms will be expected to move beyond tracking participation or reach and instead demonstrate behavioural change and improved outcomes.
M&E is positioned as a core component of the framework, not a reporting afterthought. Impact will increasingly be assessed through customer outcomes, not programme activity.
Supporting mechanisms – including a proposed Core Competency Framework, national mapping of initiatives, and a central financial education portal – are intended to improve consistency, comparability, and oversight.
Toward a coordinated system
A further objective of the policy is to address fragmentation across the financial education landscape.
Historically, initiatives have been developed in isolation, with limited co-ordination or visibility across stakeholders. The proposed framework introduces structures and tools aimed at aligning efforts and reducing duplication, with co-ordination expected to be facilitated through bodies such as the National Consumer Financial Education Committee.
Financial education initiatives are expected to operate within a common system, not as standalone programmes. This reflects a broader shift toward a more co-ordinated and measurable national approach, underpinned by a shared responsibility model across regulators, industry, and other stakeholders.
Implications for industry
Taken together, the proposals point to a more structured and outcome-driven approach to financial education.
Firms may need to:
- reassess existing programmes for alignment with national priorities;
- strengthen data and measurement capabilities;
- integrate education more fully into customer-facing processes; and
- participate more actively in coordinated initiatives.
Failure to demonstrate impact, or to align with emerging frameworks, may increase exposure to conduct risk – particularly where poor customer outcomes persist.
Comments on the draft policy close on 15 May 2026, and submissions can be sent to financialeducation.policy@treasury.gov.za.
National Treasury will also host virtual stakeholder workshops on the draft policy, with further details to be communicated in due course.
Read the full draft policy here.
