Colm Burke (Cork North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

246. To ask the Minister for Finance if there are any plans to prevent non-regulated entities from directing online financial services and investment advertising at Irish consumers; and if he will make a statement on the matter. [43014/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Central Bank regulates firms within its regulatory perimeter, and this has evolved over recent years as the financial services landscape evolves. Regulated firms may at times undertake both regulated and unregulated activities.

The provision of unregulated products and services by regulated firms can result in customers not being aware of the nature of the product and service they are accessing, and the risks associated with them. Customers may assume products are regulated and subject to the protections afforded to regulated products.

The Consumer Protection Code is an important component of the Irish financial regulatory framework. The Central Bank is currently undertaking a comprehensive review of the Code to ensure an updated and modernised Code is in place for consumers. This will be centred on firms securing customers’ interests as the key to delivering positive consumer outcomes.

In the revised Code, under the Securing Customers’ Interests’ Supporting Standards for Business, the Central Bank is proposing to require firms to clearly distinguish between the firm’s regulated activities and its unregulated activities. These new requirements for firms will ensure that there is enhanced clarity on unregulated activities.

In the broader consumer protection framework and digital space, the EU Digital Services Act package, comprising the Digital Markets Act (DMA) and the Digital Services Act (DSA), has introduced new requirements to regulate digital services. The DSA seeks to give consumers more control over what they see online.

Users must be provided with better information on why specific content is recommended to them and are able to choose an option that does not allow profiling. Additionally, under the DSA online targeted advertising must be identified as such.

Finally, the EU Retail Investment Strategy, currently under negotiation in Brussels, seeks to build the trust of consumers in European capital markets with a view to increasing their participation. In this regard, the Commission legislative proposal contains provisions to better protect retail investors from the additional risks associated with unauthorised investment services or activities offered through digital means.

For example, the relevant European Supervisory Authorities will be required to consolidate relevant information supplied to them by national competent authorities concerning measures they have taken to prevent the offering of unauthorised investment services or activities. This information will then be published so that retail investors are better equipped to identify potential frauds, wherever it emanates from in the EU.