The Central Bank of Ireland has released a new Consumer Protection Code, designed to modernise how financial service firms engage with customers in a rapidly evolving digital environment.
Set to take effect in March 2026, the updated rules introduce stricter requirements for businesses around digital services, mortgage switching, fraud prevention, and greenwashing, following recommendations from an OECD review last year.
1. Digitalisation:
5. Misleading Advertising & Regulation Clarity:
Businesses have 12 months to comply.
Full implementation required by March 2026.
Central Bank Governor Gabriel Makhlouf:
Firms must begin reviewing their policies and systems to ensure full compliance by the March 2026 deadline.
This is the most significant overhaul of consumer protections in Ireland’s financial sector in over a decade.
Set to take effect in March 2026, the updated rules introduce stricter requirements for businesses around digital services, mortgage switching, fraud prevention, and greenwashing, following recommendations from an OECD review last year.
1. Digitalisation:
- Financial firms must prioritise customer needs when designing and implementing digital services.
- Enhanced focus on usability and transparency in digital platforms.
- New disclosure requirements around switching options.
- Firms must clearly show how incentives (e.g. cashback offers) impact the total cost of credit.
- Companies must be proactive in identifying and mitigating risks related to evolving scams and fraudulent activity.
- Greater responsibility placed on providers to safeguard consumers.
- Clearer rules around how firms market climate and sustainability-linked products.
- No misleading or exaggerated environmental claims permitted.
5. Misleading Advertising & Regulation Clarity:
- Firms must clearly indicate if a product or service is not regulated to avoid confusion among consumers.
Businesses have 12 months to comply.
Full implementation required by March 2026.
Central Bank Governor Gabriel Makhlouf:
- Reflects a shift toward consumer-first regulation in digital finance.
- Enhances transparency, especially in mortgage lending and sustainable finance.
- Aims to protect consumers from misleading practices and digital-era scams.
Firms must begin reviewing their policies and systems to ensure full compliance by the March 2026 deadline.
- The Central Bank will provide guidance and monitor how firms adapt to the new code in the coming year.
This is the most significant overhaul of consumer protections in Ireland’s financial sector in over a decade.
