'Time has come' to update Consumer Protection Code, says Central Bank of Ireland Deputy Governor

New and updated provisions will tackle digitalisation, mortgage switching and fraud, among other issues

The consultation paper is the second of three steps the Central Bank is taking to clarify and integrate the code, as well as to enhance its accessibility.

The "time has come" to update the Consumer Protection Code to support Ireland's evolving financial system, Central Bank of Ireland Deputy Governor, Derville Rowland has said.

Speaking at the launch of a consultation paper on the revision of the code, Ms Rowland added that the regulator is bringing forward proposals for "a modernised version which is underpinned by firms’ obligation to secure their customers’ interests."

The consultation paper is the second of three steps the Central Bank is taking to clarify and integrate the code, as well as to enhance its accessibility.

"The Consumer Protection Code is the cornerstone of the Irish consumer protection framework," said Ms Rowland. "It has served consumers well, and the time has come to update the protections to support the financial system of today and into the future."

She added that the key goal in revising the code is to assist firms in incorporating consumers' interests into their overall business model and commercial decision-making, adding that this is addressed through "an obligation" to secure their consumer's interests.

Ms Rowland added that the regulator is proposing a package of new and updated protections to deal with the evolution of financial services, including proposals related to digitalisation, informing effectively, mortgage credit and switching, unregulated activities, frauds and scams, vulnerability and climate risk. 

"This package includes proposals around making digital platforms easier to use; making clear where regulated firms are providing unregulated services; a new definition of financial abuse; and beefing up fraud and scam monitoring and communications by firms," the Deputy Governor continued.

“We are also proposing a new framework to support people in vulnerable circumstances. Firms must take reasonable steps to support such customers and to implement training, reporting, and the recognition of Trusted Contact Persons."

Launching today, March 7th, the submission period for the consultation will remain open for three months until Friday, 7th of June, 2024.