Consumer Protection Code Review
(Ensure cookies are turned "on" to load the video above) | Transcript of the video "Video transcript Consumer Protection Code Review – Engagement Update (July 2023)"
The Central Bank of Ireland is conducting a comprehensive review of the Consumer Protection Code 2012.
The Consumer Protection Code is a set of principles and rules that regulated financial firms must follow when they:
- Sell financial products and services to you
- Give you financial information or advice
- Advertise financial products or services
- Handle your complaints
The Code was developed to protect you as a consumer of financial products and services.
The Code has served consumers well. It has established a strong set of rules and expectations for how firms should treat their customers. It has allowed us to intervene to protect consumers – such as tackling the banking sector’s mistreatment of tracker mortgage customers, or the unfair treatment of loyal customers in the insurance sector.
However, given the rapidly changing financial services landscape, the Central Bank is now reviewing the Code.
The aim of the review is to modernise the Code to ensure it is fit for purpose and continues to protect consumers of financial products today and in the future.
Phase 1: Discussion Paper
Engagement Update
In October 2022, we published a Discussion Paper, seeking views on the issues emerging for consumers in the changing financial services landscape.
An extensive six-month engagement programme with our stakeholders followed, including roundtables, bilateral meetings, and an online public survey.
The response to this engagement programme was very positive and has given us a deeper understanding of the issues facing consumers of financial services.
We are now publishing an update on this engagement to share what we have learned so far and what we will do next. We are also publishing the individual responses received to our Discussion Paper, along with the results of an online public survey, which was open on our website between December 2022 and April 2023.
Consumer Protection Code Review Discussion Paper – Engagement Update
Submissions received in response to Discussion Paper
Consumer Protection Code Review Discussion Paper – Public Survey Results
We also took to the streets of Dublin to find out what members of the public thought about a range of consumer topics. Watch the videos below.
(Ensure cookies are turned "on" to load the video above) | Transcript of the "Word on the Street video"
About the Discussion Paper
We published our Discussion Paper to engage the public, industry and consumer/representative bodies on how consumer protection in financial services should evolve to remain effective. With your input to this phase of the Code Review, we can now work towards renewing the Code to ensure it continues to be relevant and effective in securing the best interests of financial services consumers for the years ahead.
Section 1 of the Discussion Paper provides an overview of the purpose of financial regulation and consumer protection.
This section looks at international best practice on which Ireland’s consumer protection framework is based, and the role of the Central Bank and other authorities in seeking to protect consumers of financial services.
Read these chapters in full
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Section 2 of the Paper focuses on the fundamental theme of “Securing Consumers’ Best Interests”, which is at the core of consumer protection.
In this section, we set out two broad discussion themes:
– Theme A: Availability and Choice
– Theme B: Firms Acting in Consumers’ Best Interests.
Read these chapters in full
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Section 3 sets out eight more focused discussion themes, which examine other important topical issues for consumers.
In order to better understand the consequences for consumers of technology-led change in financial services and whether newer activities should be brought within the regulatory perimeter, we are seeking views on the themes of:
– Innovation and Disruption
– Digitalisation
– Unregulated Products and Services
Consumers who are empowered to make informed decisions regarding financial products and services, is a key feature of effective market functioning and consumer protection. This issue raises a number of important questions, which we would like to explore with stakeholders under the specific discussion themes of:
– Pricing Matters
– Informing Effectively
– Vulnerability
– Financial Literacy
Finally we explore issues arising from climate change from the perspective of consumers and their protection, via the theme of:
– Climate Matters
Read these chapters in full
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How is the Consumer Protection
Code Review being conducted?
The review is being conducted in three phases:
The review began with the launch of a Discussion Paper on the topic of consumer protection in financial services. The purpose of the Discussion Paper was to stimulate discussion and obtain feedback and views from consumers and stakeholders on key discussion topics before considering and publishing proposed revisions to the Code.
In light of the significant changes we are proposing to the structure, scope and content of the Code, we believe that effective implementation can best be achieved through the introduction of a revised Code in 2024 with additional changes to follow. This approach will allow us to bring forward important and impactful changes through the revised Code in 2024, and also recognises ongoing domestic and European policy developments that may subsequently require Code changes.
Our next step will be to publish a Consultation Paper on the revised Code. We will be seeking views from interested stakeholders on proposed changes to the structure, scope and content of the Code. Following consideration of feedback on these proposed changes, we will bring forward final regulations.
Subsequently, we will consider further enhancements to the Code in a number of specific areas. This will allow us to build on a number of changes introduced under the revised Code in 2024 and to reflect ongoing policy developments at a domestic level, including implementation of the recommendations from the Retail Banking Review as they relate to the Code, and from a European perspective, including the Retail Investment Strategy, and the ongoing review of Payment Services Directive 2 (PSD2).
Following the public consultation, the feedback and insights received will be analysed and incorporated into the final updated and enhanced rules, which will be published as regulations. A Feedback Statement will also be published at this time, setting out the rationale for our approach.
What Happens Next?
Now that we have completed our engagement programme on our Discussion Paper, work on the review of the Code is ongoing. Our next step will be to publish a consultation paper on the revised Code in December 2024.
See also: