Written answers

Thursday, 26 January 2012

Department of Finance

Banking Sector Regulation

5:00 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
Link to this: Individually | In context

Question 67: To ask the Minister for Finance if his attention has been drawn to the fact that the Central Bank of Ireland has issued a revised Code of Conduct for Regulated Entities; If his further attention has been drawn to the fact that new provisions have been made which effectively ban cold calling in that regulation 3.38 requires the regulated entity to have received informed consent prior to visiting with a potential customer; his views that such a ban on cold calling will impact in a severely negative way on many insurance brokerages giving rise to loss of employment in some of these businesses; if he will request the Central Bank of Ireland to review and revise its code; and if he will make a statement on the matter. [4598/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The Central Bank have advised me that the current version of their Consumer Protection Code (2012) was finalised following extensive consultation. The Consumer Protection Code was originally introduced in 2006. The purpose of the Code is to strengthen protection for consumers by introducing clear conduct of business rules for all regulated entities in order to increase the standards of service to consumers and to ensure that consumers are provided with financial products that are suitable for them.

During 2010 and 2011 the Central Bank undertook a review of the 2006 Code in order to:

* address issues that had arisen during their consumer-focused inspections,

* take account of market intelligence received, and

* provide clarity on the impact of EU legislation and other developments which had arisen since the Code was first introduced.

In October 2010, the Central Bank published a consultation paper on their proposed revision of the 2006 Code and issued a second consultation paper in June 2011. Among the respondents were the Irish Brokers' Association, the Professional Insurance Brokers' Association and the Irish Insurance Federation.

The Central Bank have advised me that, following a review of the submissions received, they decided to strengthen protection for consumers against unsolicited personal visits from representatives of firms regulated by the Central Bank. They have also advised me that the provisions set out in sections 3.37-3.45 in the current version of the Code are a combination of the 2006 Code requirements for telephone contact and stricter rules in relation to personal visits, with unsolicited personal visits prohibited. I have no evidence to suggest that a ban on cold calling would impact negatively on employment in the insurance sector. The Central Bank's Consumer Protection Code may be accessed on the Central Bank's website www.CentralBank.ie.

Comments

No comments

Log in or join to post a public comment.