Consumer Protection Code Consultation CP158

Wed May 1 2024

As previously advised the Central Bank launched the Consumer Protection Code consultation on the 7th of March 2024.

Outlined below are some key areas that the consultation paper focuses on:

  • The introduction of a Securing Customers’ Interests obligation.
  • Vulnerability – introduces a new definition of what is a consumer in vulnerable circumstances, new obligations for staff to receive training on vulnerability issues with a requirement for firms to facilitate a new trusted contact person.
  • It introduces new requirements in respect of unregulated activities in respect of transparency of branding.
  • It proposes to introduce within the regulations the IDD requirement of capturing sustainability preferences as part of the knowing the consumer requirement and asks whether sustainability preferences should be given the same level of consideration as risk profiling etc.
  • SME threshold – the Central Bank is proposing to update the threshold in the definition of consumer under the revised Code to apply the General Requirements to small businesses, to include incorporated bodies with an annual turnover of less than €5m per annum (current threshold is €3m).
  • Insurance switching – a further enhancement is also proposed to the general renewal requirements for insurance products. In addition to the ‘renewal notice’ currently issued to holders of non-life insurance policies 20 days in advance of their renewal date, an additional ‘pre-renewal’ notification will now be required for consumers a further 20 days prior to the issuance of the ‘renewal notice’.
  • Investments and Pensions – the Central Bank are proposing to strengthen current requirements in the revised Code, so that firms inform their customers of the importance of considering the ongoing suitability of investment and pensions products for their needs at the point of sale, and in annual statements. Where the firm does not provide ongoing suitability assessments, firms will be required to explain to the customer the reasons for this.

To provide members with a further insight into the consultation,  the Central Bank is providing a webinar for members on the consultation.  Please see the enclosed link to register for this webinar.

If members have any queries on the consultation or have any feedback please contact compliance@brokersireland.ie


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