Eamon Ryan (Dublin South, Green Party)
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Question 290: To ask the Minister for Finance the reason banks and financial institutions have been exempted from the core aspects of the consumer protection code; and the reason there has been no move to strengthen or broaden the consumer protection that applies to basic banking products and services in line with the new consumer protection code. [33186/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Financial Regulator's Consumer Protection Code applies to all providers of retail financial services subject to regulation by the Financial Regulator. The Code including any exemptions in it is structured by reference to product and service rather than the type of regulated entity. Accordingly banks and other regulated financial institutions are subject to its provisions. The Deputy refers in his question to basic banking products and services. The Code's "Knowing the Consumer" and "Suitability" requirements do not apply to these products or services when certain criteria are met. These criteria include a requirement that the regulated entity has to alert the consumer to any restrictions on the account and/or the availability of a lower cost alternative. However these exemptions do not absolve regulated entities from their obligations under the general principles of the Code. These general principles include an obligation to act in the best interests of consumers. Basic Banking products are relatively straightforward hence the imposition of "Knowing the Consumer" and "Suitability" requirements would not be consistent with Better Regulation principles. The introduction of the Consumer Protection Code therefore significantly strengthens and broadens the protections available for consumers of all financial products and services, including basic banking products.