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Central Bank updates consumer protection code

The Central Bank has (24 March) published the modernised Consumer Protection Code, following an extensive review.

The Consumer Protection Code outlines a set of rules and business standards that regulated financial firms must follow when dealing with consumers. 

Firms have a year to put the revised code in place, and so the provisions will apply for the public from March 2026. 

Review

Today’s publication follows a comprehensive review that included a discussion paper, public survey, public consultation and engagement with consumer and industry stakeholders.   

The code reflects the way financial services are provided in a digital world, and builds on the protections provided in the existing code.

The modernised code is centred on an obligation for firms to secure customers’ interests which embodies a customer-focused mindset where firms proactively take ownership of, and responsibility for, consumer protection.

It also enhances consumer protections across a range of areas, including: 

• Digitisation – firms must be customer-focused in the design and implementation of digital services,
• Informing effectively – a shift from requiring firms to disclose information, to informing effectively,
• Mortgage switching – firms must meet new disclosure requirements on switching options and the cost of incentives on the overall cost of credit of a mortgage,
• Provision of unregulated activities by regulated firms – firms must ensure customers can have no impression or misunderstanding that they are purchasing regulated products and services, where that is not the case,
• Firms must be vigilant to the evolving risks of frauds and scams, and take appropriate actions to protect customers,
• Protecting consumers in vulnerable circumstances – an updated definition of vulnerability, recognising that customers can move in and out of circumstances that make them vulnerable,
• To tackle the risk of greenwashing, firms will be required to ensure they communicate clearly on climate and sustainability features of products,
• Enhanced requirements for consumer credit, small and medium-sized enterprises (SMEs) protections, insurance and investments and pensions.

Governor Gabriel Makhlouf (pictured) said: “The modernisation of the Consumer Protection Code is a significant milestone for the protection of consumers of financial services in Ireland, and is built on the strong foundations of its predecessor. 

"Over the last decade, we have, along with the CCPC and FSPO in particular, played a significant role in strengthening the consumer protection framework in Ireland, to ensure that the system and protections are in line with global standards."