Michael McGrath (Cork South Central, Fianna Fail)
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127. To ask the Minister for Finance if there is an obligation on the financial service provider to inform persons it plans to unveil a new product or enhance an existing product, both of which would be very beneficial to the person concerned in circumstances in which a person is making a significant decision on same; and if he will make a statement on the matter. [50478/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I have consulted with the Central Bank on this issue and it has confirmed that its Codes of Conduct do not impose a requirement on regulated entities to inform consumers of their plans to unveil new products or enhance an existing product.

Under the Central Bank’s Consumer Protection Code 2012 (the Code), a regulated entity must ensure that in all its dealings with customers and within the context of its authorisation it acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market. 

Provision 3.10 of the Code provides that where a regulated entity intends to amend or alter the range of services it provides, it must give notice to affected consumers at least one month in advance of the amendment being introduced. Provision 4.12 of the Code requires regulated entities to draw up its terms of business and provide each consumer with a copy prior to providing the first service to that consumer.  In this document, the regulated entity must set out the basis on which it will conduct business with consumers.  Provision 6.1 of the Code provides that where a regulated entity makes a material change to its terms of business, it must provide each affected consumer with a revised terms of business as soon as possible.

That said, I can appreciate that a consumer will be aggrieved to find that a new product becomes available after they have taken a less favourable one. However there must be a cut-off point between the availability of products and it is inevitable that some people will fall on what they consider to be the wrong side of that line. The Deputy will be aware of the availability of the Financial Services Ombudsman in the case of unresolved complaints against a regulated financial service provider and the fact that the Ombudsman is independent in the performance of his duties.