knowledge 26 March 2024 |

Central Bank consults on proposed revisions to Consumer Protection Code

The Central Bank of Ireland (the “CBI”) recently published a Consultation Paper on the revision of the Consumer Protection Code (the “Code”) which sets out proposed changes to the Code. These proposed changes build on the Discussion Paper on this topic (which was published by the CBI in July 2023).

The submission period for the CBI’s consultation runs until Friday 7 June 2024. Details about making a submission are set out in Chapter 5 of the Consultation Paper.

The Proposed Changes

The CBI intends to enhance the predictability of consumer protection obligations and to create an obligation on firms to incorporate customers’ interests into their overall business model and commercial decision making. Further details are set out in the draft Guidance on Securing Customers’ Interests. In particular, the CBI proposes updating the Code with respect to:

• Digitalisation e.g. making digital platforms easier to use;

• Informing effectively;

• Mortgage credit and switching e.g. requiring firms to inform consumers about switching options and the cost of incentives;

• Unregulated activities e.g. requiring regulated firms to clarify when they are providing an unregulated activity;

• Monitoring for Frauds and Scams;

• Vulnerability e.g. requiring firms to take reasonable steps to support vulnerable customers and to implement training, reporting, and the recognition of Trusted Contact Persons (an issue that has been referenced by the Minister for Finance).¹ Further details are set out in the draft Guidance on Protecting Consumers in Vulnerable Circumstances; and

• Climate risk e.g. proposed new suitability and advertising requirements for firms to avoid ‘green-washing’.

The revised Code will be reflected in two new Central Bank Regulations, which are set in draft form in the Annexes to the Consultation Paper:

1. Standards for Business, complemented by Supporting Standards for Business, which will replace the existing General Principles of the Code; and

2. General Requirements, which will include new protections, and existing requirements set out on a cross-sectoral and sector specific basis.

Timeline

The revised Code is expected to be published in early 2025. The CBI has proposed “a 12-month period for implementation, starting from the final date of publication of the revised Code, following completion of this consultation process.”²

Also contributed to by Eunice Collins