[co-author: Sheharyar Nawaz]
The CBI’s Consumer Protection Code was first introduced in 2006 and has been heavily amended in the intervening years. The Code is designed to ensure that financial service providers operate in a manner that is fair, transparent, and in the best interests of consumers and represents domestic ‘gold-plating’ of consumer protection requirements for customers of regulated financial service providers in Ireland. Following a detailed review of the current version of the Code, the CBI has published a revised Consumer Protection Code 2025 that will take effect on 24 March 2026 following a 12-month implementation period.
Standards of business regulations
As part of the Central Bank’s 2024 CPC consultation, draft ‘Standards for Business’ Regulations were proposed, and the final regulations have now been published. These regulations, which include Standards for Business and Supporting Standards for Business, will come into effect on 24 March 2026. They set out governance, resource and risk management requirements for firms. They also set out conduct standards for firms. Certain requirements include:
- Effectively informing consumers to enable them to make informed decisions that align with their financial needs.
- Clearly distinguishing between the entity’s regulated and unregulated activities, taking all necessary measures to prevent customers from mistakenly believing that an unregulated activity offers the protections associated with a regulated one.
- Ensuring that firms implement adequate measures to safeguard the system and protect their customers from financial abuse, including fraud and scams.
Consumer protection regulations
The Consumer Protection Regulations establish cross-sectoral requirements that apply to all sectors, along with specific stipulations for the provision of Consumer Banking, Credit and Arrears, Insurance, and Investments. These regulations govern the regulated activities of firms when dealing with customers classified as ‘consumers’. For the purposes of the CPC, consumers are defined as:
- natural persons;
- groups of natural persons (such as clubs or charities); or
- corporate entities with a turnover of EUR 5 million or less, or part of a group with a turnover of EUR 5 million or less (this threshold has been raised from EUR 3 million as per the current CPC 2012).
The CBI has introduced cross-sectoral requirements in several key areas, including:
- Knowing the Consumer and Suitability;
- Conflicts of Interest and information about remuneration;
- Consumers in Vulnerable circumstances;
- Digitalisation;
- Informing effectively;
- Information about charges;
- Information about regulatory status;
- Unregulated activities;
- Advertising;
- Bundling and contingent selling;
- Errors resolution;
- Complaints resolution;
- Unsolicited personal visits and telephone calls;
- Records and compliance; and
- Miscellaneous business requirements.
Additional guidance
The CBI has published Guidance on Securing Customers’ Interests and Guidance on Protecting Consumers in Vulnerable Circumstances. In order to assist firms with implementation of the obligations in the revised CPC, it has also released a valuable Mapping Tool that illustrates where the existing Code, the Code of Conduct on Mortgage Arrears and the S.I. No. 196/2020 - Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Licensed Moneylenders) Regulations 2020 are reflected in the revised Code. The CBI has also published a redline showing amendments to the revised CPC from the draft published as part of the consultation process.
Application
The Consumer Protection Code 2012 (existing Code) remains effective until the implementation period ends and the revised Code goes into effect on 24 March 2026.
Next steps
As we move forward, we will be sharing more detailed information that goes beyond this high-level update. Stay tuned for upcoming insights that will delve deeper into the revised CPC.
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