Consumer Protection Code Review
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Have your say
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 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.
How is the Review being conducted?
The Review is being conducted in three broad phases:
The Review begins with the launch of a Discussion Paper on the topic of consumer protection in financial services. The purpose of the Discussion Paper is 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. Following phase 1, we will share our engagement feedback in Q2 2023.
The Public Consultation phase will see the publication of a Consultation Paper setting out specific proposals on how the Code should be updated and improved. This will be accompanied by draft regulations. The aim of the consultation will be to seek views from interested stakeholders on proposed changes to the Code, and to ensure clarity and transparency with regard to the proposed measures.
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.
Discussion Paper
We know that changes to the Code must be informed by the experiences and insights of those whom it seeks to protect – as well as those it regulates.
This is why we have published the Discussion Paper. We want to hear from the public, industry and consumer/representative bodies about how consumer protection in financial services should evolve to remain effective. These views will help to inform the evolution of the Code so it continues to protect consumers.
The Discussion Paper seeks views on specific consumer protection topics – including availability and choice of financial products, firms acting in consumers’ best interests, innovation and disruption, digitalisation, vulnerability, financial literacy and climate matters.
With your input to this first stage of the Consumer Protection Code review, we can work towards renewing the Code to ensure it continues to be relevant and effective in securing the best interests of consumers of financial services for the years ahead.
Our Discussion Paper is structured as follows:
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.
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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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Have your say
What changes do you think need to be made to the Consumer Protection Code to ensure that it is fit for purpose in today’s financial system? This Discussion Paper is an opportunity for you to have your say.
In order to capture the broadest range of views, we have launched two online surveys – one aimed primarily at industry and consumer/representative bodies, and one aimed at the public.
The in-depth industry / representative body survey allows for more detailed responses to the information contained in the Discussion Paper. We recommend reading the Discussion Paper prior to completing the industry / representative body survey.
The short-form public survey asks high-level, multiple choice questions on the policy topics contained in the Discussion Paper. This survey will take around five minutes to complete. While we encourage you to read the Discussion Paper, the survey can be completed without any pre-reading. Members of the public are also welcome to complete the in-depth survey.
Consumer Protection Code Review – Discussion Paper | pdf 2317 KB
The deadline for feedback is 5.00pm on Friday 31 March 2023.
We will publish a summary of the feedback we receive to both surveys in Q2 2023.
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