New proposals that would give added protection to consumers have today been published by the Central Bank.
A new consultation paper issued this morning outlines measures which would require financial institutions to strengthen existing regulations in a number of areas including enhanced disclosure and transparency requirements.
Among the measures proposed is more rigorous requirements for assessing whether a product or service is suitable for a customer.
Under the changes, firms will also be required to gather information about customers' personal circumstances, financial situation and attitude to risk.
A definition of what constitutes a vulnerable consumer is proposed and firms will be encouraged to apply a greater level of care to anyone if a vulnerability is identified.
More prescriptive requirements on the handlings or errors will be introduced which force companies to rectify problems within a six-month period.
The Consumer Protection Code originally came into effect in July 2007.
‘Consumer protection remains a high priority area for the Central Bank and this review of the Code is the most significant strengthening of consumer protection requirements for financial firms since the Code was first introduced three years ago," said Bernard Sheridan, assistant director general, at the Consumer Protection division.
"The new rules and stricter requirements for firms in how they deal with consumers will enhance the level of protection for consumers in their dealings with regulated financial services firm," he added.
The Central Bank is currently seeking views on its proposed changes and intends to publish the revised Code next year.
