Federal Finance Minister Jim Flaherty announced on Friday the establishment of a task force on financial literacy, and said that Donald Stewart, CEO of Sun Life Financial Inc., would chair the group.

The task force, which was announced as part of the 2009 federal budget, will outline objectives, including a concrete plan of action and a framework for collaboration among stakeholders, for moving forward and measuring progress on financial literacy in Canada.

The group will hold consultations and meet with experts, and is expected to deliver a report of recommendations to the Minister of Finance in the fall of 2010. Its goal is to develop a national strategy to make all Canadians more knowledgeable consumers, investors and savers, Flaherty said.

“On financial literacy, there is no question that we must do better in Canada,” he said, announcing the launch of the task force in Toronto on Friday.

“Financial literacy will make the Canadian financial system more stable, more competitive and make our economy stronger,” he said.

Flaherty added that the financial crisis has underscored the urgency of improving financial literacy in Canada.

“Our economy is built on millions of everyday financial decisions by Canadians,” Flaherty said. “Recent events have shown us that financial decisions carry risk – some minor, some more important. That is why financial literacy is such an important life skill.”

Stewart said he was honoured to chair the task force of 13 members.

“Our focus is going to be on practical solutions for real people in real life,” he said at the press conference on Friday. “I think we can make a real difference for Canadians in today’s extremely complex environment.”

The Canadian Life and Health Insurance Association congratulated Stewart on his appointment.

“The life and health insurance industry strongly supports this initiative by the government to better equip Canadians to understand the financial products and services that are available to them and the implications of the financial decisions that they make,” CLHIA said.

L. Jacques Ménard, chairman of BMO Nesbitt Burns, will be vice chairman of the task force.

Other members of the task force are drawn from the business and education sectors, community organizations and academia. They include Laurie Campbell, executive director of Credit Canada/the Credit Counselling Service of Toronto; Marcel Côté, founding partner of SECOR Consulting; journalist and author Patrick C. Foran; Ted Gordon, a financial security advisor with Freedom 55 Financial in Ottawa; Evelyn Jacks, founder and president of The Knowledge Bureau; Ruth Kelly, president and CEO of Venture Publishing Inc., and the publisher and editor-in-chief of business publication Alberta Venture; Janice MacKinnon, a professor of fiscal policy at the University of Saskatchewan; P. Mitchell Murphy, a career education consultant with the Western School Board in Prince Edward Island; Greg Pollock, president and CEO of Advocis; Bill Schwartz, a principal of Polestar Communications Inc.; and Jean Vincent, president and general manager of Aboriginal financial institution Native Commercial Credit Corporation.

The Canadian Bankers Association applauded the establishment of the task force.

“Canada’s banking industry has long recognized the importance of financial literacy and we applaud Minister Flaherty for the creation of this task force,” said Nancy Hughes Anthony, president and CEO of the Canadian Bankers Association. “The task force’s broad membership brings a range of expertise to the table and we look forward to working closely with its members to ensure Canadians are better able to make informed choices about important financial decisions.”

IE