# Central Bank publishes Consumer Protection Outlook Report



## Brendan Burgess (7 Feb 2015)

*[broken link removed]*

*Press release 6 February 2015 *

The Central Bank has today (6 February) published its first [broken link removed], which sets out a number of consumer protection themes it will be focusing on, in the context of its overall strategy and the risks the Bank sees to its consumer protection objectives. 

Director of Consumer Protection, Bernard Sheridan, said: “Financial products and services play such an important part in the everyday lives of consumers and while they can deliver consumer benefits, they can also present risks if the right product is not sold in the right way to the right consumer. 

This Report sends a clear message to all regulated firms of our expectations of them. This includes embedding a consumer-centred culture from the top of the organisation, right through to the staff delivering products and services to their customers.  We expect firms to go beyond tick-box compliance and to be able to demonstrate that they are acting in the best interests of consumers at all times and treating them fairly and with dignity and respect.”

*Notes to editors:*

Some key priorities:


Contribute to and influence the European and International legislative agenda and at domestic level.
Continue to work with the Department of Finance to secure the necessary legislation, extending the same protections of Irish financial services legislation (including the Code of Conduct on Mortgage Arrears), to borrowers whose loans are sold on to non-regulated lenders.
Introduce additional protections for Small and Medium Enterprises (SMEs) when accessing credit and requirements for firms dealing with SMEs when they get into financial difficulty.
Build on the Bank’s engagement with Boards and CEOs, ensuring that they can demonstrate delivery of meaningful consumer outcomes based on a better understanding of the needs, expectations and experiences of their customers. This includes requiring firms to demonstrate that their products are fit for purpose, going beyond tick-box and disclosure requirements  to ensure that they are fair, suitable and understood by their customers.
Monitor and challenge how firms are responding to the Bank’s 2014 guidance on appropriate variable remuneration arrangements in recognition of the impact of incentive structures on culture and practices.
Focus supervisory work on firms that are not meeting the minimum standards, including those deemed as “low impact”, which nevertheless may pose a threat to consumer protection.
Conduct risk and evidence-based themed reviews and inspections to support the delivery of the Bank’s consumer protection objectives and priorities including: lenders’ compliance with the CCMA; responsible lending; suitability of sales with an emphasis on the sale of long term products such as pensions; and the sale of certain products without advice (so-called ‘execution-only sales’).
Consider the findings of the Netherlands Authority for the Financial Markets (AFM) Peer Review Report of the Central Bank’s performance of its Consumer Protection functions  with a view to ensuring that Consumer Protection objectives / mandate is being met in the most effective way.
Use research and evidence-based data to inform our Consumer Protection priorities.


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## Steven Barrett (7 Feb 2015)

I read the report yesterday, it says nothing. The accompanying email said "We expect firms to go beyond tick-box compliance and to be able to demonstrate that they are acting in the best interests of consumers at all times and treating them fairly and with dignity and respect"

In recent dealings with the Central Bank, they take box-ticking to a whole new level. What was allowed to continue at Custom House Capital was because the Central Bank were more interested in the box-ticking than on stopping the unauthorised transfer of money from client accounts to geared property syndicates...something that still hasn't been resolved and the Central Bank won't allow clients be updated on where their money is. 

Compliance paperwork is a hindrance to giving good advice. 

Clients want information on charges, funds, risk exposure, potential gains and losses. Then we have to add in the full disclosure policy quotation, product brochure and a reasons why statement that has to be worded a certain way. There is an information overload which often results in the clients not taking anything in. There is still plenty of advisors who are not up front about charges either because they give the client a policy quote which shows their commission but they know is never read.  


Steven
www.bluewaterfp.ie


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## Gerry Canning (9 Feb 2015)

Mr Sheridan tells a good story.I do like fiction!
........................................
The Central Bank under their Consumer Camoflage  has consistently done very little for consumers when issues arose.
We are now expected to believe these people who have patently failed us thus far.
Effectively the same people are in charge that were in charge in the (bust).

As Steven says, these people ensure there are pages are pages and pages and pages of barely decipherable verbiage on even what should be simple contracts.They then blame the Broker if all is not explained in turgid language.
The beauty of their approach is they can put their hand on their heart and say ,
(It was on the contract).
They have proven to have a box -ticking mentality that gets in the way of good advice.
They live by the Letter of the Law and ignore the Spirit of the Law.


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## Bronte (9 Feb 2015)

Thanks to the last two posters, who work in the financial area for confirming that this document is only fit for the bin.


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