The OECD has today (Monday 16 December 2024) published the outcome of its review of the Central Bank of Ireland’s consumer protection supervisory functions.
The Central Bank commissioned the OECD to review its supervisory functions against the global standards for financial consumer protection – the G20/OECD High-Level Principles on Financial Consumer Protection (G20/OECD Principles). The review involved an in-depth assessment of the Central Bank’s approach by the OECD, and was also informed by feedback provided by key external stakeholders in a series of mission meetings.
The OECD assessment found that the Central Bank is strongly committed to fostering and upholding the G20/OECD Principles, aligns with international standards and that its practices are consistent with peer regulators.
Governor of the Central Bank, Gabriel Makhlouf said: “I welcome the findings of the review by the OECD, which provided an opportunity for our consumer protection supervisory functions to be assessed against global standards by an objective, independent third party. This is the first review of its kind by the OECD, and the Central Bank was very pleased to be a pioneer in this work, given our shared commitment to consumer protection.
“Consumer protection is at the heart of everything we do in the Central Bank, aligned to our constant and predominant aim of the welfare of the people as a whole. Over the last decade, the Central Bank, alongside other key public institutions, has played a significant role in strengthening the consumer protection framework in Ireland, with the aim of ensuring that our system and protections are in line with global standards. While this strengthening of the framework has improved supports and outcomes for consumers, we equally recognise the importance of ensuring that the framework continues to adapt and evolve so that it remains fit for purpose and future ready.
“The implementation of these recommendations will sit alongside our new regulatory and supervisory framework and our forthcoming new Consumer Protection Code and ensure regulated firms are operating under a modernised set of rules and approaches as we face into a changing global economy.”
Carmine Di Noia, OECD Director for Financial and Enterprise Affairs said: “Financial consumer protection is key to ensure consumers are treated fairly, receive transparent information, and are safeguarded against misconduct when purchasing financial products and services. Today’s digital landscape means that consumers need to navigate an ever more complex environment, making the role of governments and market conduct supervisors, such as the Central Bank of Ireland, more important than ever.
“The G20/OECD High-Level Principles on Financial Consumer Protection are the international standard for effective and comprehensive financial consumer protection frameworks. They offer a roadmap for countries to improve existing policies and regulations, and develop new ones.
“We are very pleased to have collaborated with the Central Bank on this important review, highlighting the many strengths of its supervisory approach to protecting financial consumers, and ways forward to continue to reinforce its alignment with the G20/OECD Principles.
“Effective consumer protection benefits the whole economy. It builds trust in the financial system, supports financial inclusion and helps prevent risks such as over-indebtedness, ultimately supporting economic resilience and financial well-being. We congratulate the Central Bank for taking on this important work.”
Deputy Governor, Consumer & Investor Protection, Derville Rowland said: “The OECD’s assessment that the Central Bank is operating in line with the G20/OECD Principles is very positive. The recommendations from the OECD will support the modernisation of our regulatory and supervisory approach. In particular, we welcome that many of the OECD’s recommendations start from the consumer’s perspective, providing important insights as we work to ensure that this perspective is embedded in our integrated approach to supervision. This includes insights on the way in which we provide information to consumers; our work to protect consumers in vulnerable circumstances; and ultimately how we measure our effectiveness in terms of consumer outcomes.
“We have developed a comprehensive implementation plan to address and embed the recommendations, in line with the OECD’s expectations. Implementing the OECD recommendations, the revised Consumer Protection Code, the Individual Accountability Framework (IAF) and our new supervisory framework means that regulated firms will be operating under an up to date set of rules and subject to an integrated supervisory approach.”
Notes to editors
The G20/OECD High-Level Principles on Financial Consumer Protection are the international standard for effective and comprehensive financial consumer protection frameworks. They were originally endorsed by G20 Leaders in November 2011 and adopted by the OECD Council in the form of a Recommendation on 17 July 2012. The G20/OECD Principles were reviewed and updated in 2022, via a comprehensive process to incorporate developments over the ten years since they were first adopted.
This is the first review of a country or public authority carried out by the OECD against the G20/OECD Principles, and the review process itself considered both material provided or produced by the Central Bank and engagement with a wide range of the Central Bank’s stakeholders.
A report of the OECD review will be included in the Central Bank’s Annual Performance Statement for 2025 in accordance with Section 32L of the Central Bank Act. The review by the OECD will also contribute to the Central Bank’s obligations under Section 32M of the Central Bank Act 1942 to arrange for a regular review of the performance of its regulatory functions.