The Consumer Protection Code Review – Last Chance to Have Your Say
In March of this year, the Central Bank of Ireland (CBI) published a consultation paper on its Consumer Protection Code (CPC or the Code). In this paper, the CBI sets out its intention to deliver an “updated and modernised Code that reflects developments of recent years and the services and delivery channels being accessed today” and its intended timeframe for the delivery of this.
- 7 March 2024 – Review consultation paper
- 7 June 2024 – Consultation closes
- Early 2025 – Revised code and feedback Statement
- 2025/2026 – Implementation
So as the consultation phase draws to a close, we remind regulated providers of financial services, or those seeking authorisation to provide such services, to input into this process while it remains open.
Based on its consultation paper, in the Revised Code, the CBI intends to:
- Clarify how firms will be expected to meet their obligations to act in the best interest of their customers to ensure a consumer focus and positive consumer outcomes.
- Modernise the CPC by enhancing and clarifying consumer protections across a range of issues which include:
- Digitalisation
- Informing effectively
- Mortgage credit and switching
- Unregulated activities
- Frauds and scams
- Vulnerability
- Integrate the Code’s format and structure by consolidating a range of codes and rules into the revised Code and by converting the Revised Code into two new CBI regulations.
- Enhance accessibility of the Code to make it easier for all stakeholders, including businesses and users as well as consumers to find and understand the information they need though the use of online tools, explainers and guides.
It is not expected that there will be a transformational difference between the final version of the Revised Code and the current CPC. However, it is very likely that the obligations on the regulated providers of financial services will be increased in a number of ways, so it is very important that such firms input to the CBI’s process to ensure any implications from such proposals are fully considered. While much of the CPC has broad applicability, there is also a number of sector-specific obligations which means that the overall impact on firms is likely to depend on the sector in which they operate as well as the specifics of each business and its customers. It is also worth noting that, for the purpose of the Code, small businesses with a turnover of up to €5 million per annum (previously €3 million) will be regarded as consumers.
Already, over 10,000 firms, regulated by the CBI, are providing financial services in Ireland and that number is growing all the time with the establishment of many indigenous businesses and a steady follow of international providers that continue to chose Ireland as a base for their EU activities. The CBI appears to be genuine and enthusiastic in seeking inputs from the industry and fscom would encourage all regulated firms to consider having its say.
Closing date for responses is Friday 7 June 2024. It should be noted that the CBI has a policy to publish all responses to its consultations. Submissions can be made either by email to codereview@centralbank.ie or by post to the Central Bank of Ireland, PO Box 559, Dublin 1. Full details are available on the CBI’s website.
This blog contains a general summary of advice and is not a complete or definitive statement of the law. Specific advice should be obtained where appropriate.
