Central Bank publishes Consumer Protection Outlook Report for 2021

• Report sets out the Central Bank’s consumer and investor protection priorities for 2021, and the risks that pose the greatest potential for consumer and investor harm.
• Firms must be clear on the issues and areas that we expect them to pay close attention to, and to take action to avoid negative effects on consumers and investors.
• Firms need to be mindful of the risks to consumers that arise in these uncertain times.

The Central Bank of Ireland has published the Consumer Protection Outlook Report for 2021.

The Outlook Report sets out the priority areas that the Central Bank will be focusing on for the year ahead to ensure firms are meeting the standards consumers and investors should expect to engage with trusted, responsible firms that will act in their best interests. Our priorities are informed by our sectoral risk assessments, our supervisory work and experience and information we get from our ongoing engagement with others working in the consumer protection framework.

Our 2021 priorities are to:

• Deliver intrusive risk-based supervision where we will intensify our targeted assessment of those firms and sectors that pose the greatest potential harm to consumers and investors
• Enhance and strengthen the consumer protection framework
• Drive firms to take responsibility for embedding consumer-focused cultures
• Influence and shape key policies
• Ensure borrowers in financial distress are treated fairly
• Enhance our gatekeeping process

The Outlook Report also outlines the main risks, across all financial sectors that we believe pose the greatest potential for consumer and investor harm, and what we expect firms to do to address the risks identified. The key cross-sectoral risks for 2021 are:

• The absence of a consumer focused culture
• Consumer protection during the COVID-19 pandemic
• Ineffective disclosure
• Unfair practices and behavioural vulnerability
• Risks from technology
• Mis-selling and inadequate suitability assessment

Director of Consumer Protection, Gráinne McEvoy said: “Protecting consumers carries across all aspects of our work in the Central Bank. It is core to what we do and who we are. Our priorities are always grounded in our goal of a financial system that fosters trust, where consumers and investors are protected, deposits are safe and insurance reserves are adequate to meet liabilities.

“We publish this report outlining our priority areas and risk assessment every year so firms are clear on the issues and areas that we expect them to pay close attention to, and to take action to avoid negative effects on consumers and investors. However, it is important that firms do not treat either the priorities or risks as exhaustive lists. We will remain responsive to issues that may arise and, most importantly, we expect we expect firms to look beyond the risks outlined to ensure that other risks that may be relevant to their customers or business area are properly managed.

“The last year has shown us all that our systems and approaches must be flexible and responsive to events that we have not planned for or expected. However, there are still challenges ahead of us, and to ensure the continued protection of consumers, firms need to remain proactive and vigilant in their planning and mindful of the risks to consumers that arise in these uncertain times.

“Consumer protection begins with the financial services firms. We expect all firms to consider each risk we have identified, in the context of their own risk assessments, and to take all appropriate actions to protect their customers. “