Following our previous Supervisory Priorities client update, the Central Bank of Ireland ("Central Bank") released its latest Consumer Protection Outlook report ("Report") on Monday 14 March 2022.
The Report highlights fundamental consumer protection issues encountered by the Central Bank as the supervisor of regulated financial services in Ireland.
Drawing on available data and supervisory experience the Central Bank:
- Identifies the top five core cross-sectoral risks facing consumers of financial services in Ireland as;
- Poor business practices and weak business processes
- Ineffective disclosures to consumers
- Changing operational landscape
- Technology driven risks to consumer protection
- The impact of shifting business models
- Sets out what the Central Bank expects firms to do about those risks, which will inform the basis of conversations with firms in the coming weeks and months; and
- Invites views of the public on the risks and issues identified.
The Central Bank expects all regulated financial firms to review the risks and take action to avoid these risks causing potential harm to consumers.
The Central Bank also intends to review its Consumer Protection Code starting with the publication of a discussion paper to seek views on how that code should evolve in the context of the changing financial services landscape.