Insight Series on the Central Bank of Ireland's Consultation Paper on the Consumer Protection Code Insight 1: Standards for Business
Overview of Insights Series
Following on from our Initial Observations on the Central Bank of Ireland's Consumer Protection Code Consultation Paper we will be releasing a series of Insights over the next 4 weeks on the changes and enhancements proposed by the Central Bank of Ireland ("Central Bank") in its Consultation Paper on the Consumer Protection Code ("CPC").
This series of Insights will cover both the principal and additional policy proposals and include our analysis of the key changes for regulated financial service providers ("RFSPs").
The policy proposals aim to modernise the CPC and ensure it remains fit for purpose, reflecting the ever evolving nature of financial services and the key developments in the Central Bank's supervision of RFSPs in recent years.
Our first Insight provides an overview of the new Standards for Business.
Keep an eye out for our next Insight which will explore the new Standard for Business of Securing Customers Interests and the related obligations on RFSPs in further detail.
The Revised Code
The Central Bank has proposed a revised structure to the CPC comprising:
- The Central Bank Reform Act 2010 (Section 17A) (Standards for Business) Regulations, ("Standards for Business Regulations");
- The Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Conduct of Business Regulations) ("Conduct of Business Regulations");
- Supporting Guidance on Securing Customers' Interests; and
- Supporting Guidance on Protecting Consumers in Vulnerable Circumstances, (together the "Revised Code").
Standards for Business Regulations
The Standards for Business Regulations set out nine Standards for Business. The Standards for Business include standards relating to governance, resources and risk management, along with robust conduct standards, which build on and update the existing General Principles of the CPC.
- Secure customers' interests;
- Act with honesty and integrity;
- Act with due skill care and diligence;
- Act in the best interests of customers and treat them fairly and professionally;
- Effectively inform customers;
- Control and manage affairs and systems, sustainably, responsibly and in a sound and prudent manner;
- Maintain adequate financial resources;
- Control and manage affairs and systems to counter the risk of financial abuse; and
- Engage and co-operate with regulators in good faith and without delay.
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