I propose to take Questions Nos. 174 and 216 together.
The Central Bank is the independent regulator for financial services and as such it determines what measures or actions need to be taken in relation to any potential, or actual, wrongdoing by regulated financial service providers.
On the specific matter of the sale of unregulated investment products in this jurisdiction, European and Irish legislation requires the regulation of financial services firms providing investment services in relation to investment products. The law is prescriptive and lists the various type of investment services and investment products that are regulated. Regulated firms may also sell investment products which are not specifically mentioned in the law (i.e. unregulated products). Consequently, regulated firms are not prohibited from providing services in relation to unregulated products. Where they do so, certain investor protections, which apply to regulated activities, are not applicable to unregulated products.
In addition, the Central Bank recently reviewed the Consumer Protection Code (CPC) which is the Standards for Business Regulations and Consumer Protection Regulations. The CPC review included a review of the rules around the sale of unregulated products by regulated entities. As part of the review, the Central Bank held a public consultation on its proposed changes to the CPC. The CPC has been updated, and changes came into effect in March 2026. The revised Consumer Protection Code sets out requirements that apply to regulated entities when providing unregulated financial products and services.
Under the Code’s Standards for Business, firms are required to ensure that all information they provide to customers is presented in a way that seeks to effectively inform the customer.
Under the Securing Customers’ Interests Supporting Standards for Business, firms are required to take appropriate steps to mitigate the risk that a customer will understand an activity to be, or to carry the protections of, a regulated activity where this is not the case. There are additional disclosure requirements to ensure firms enable customer understanding of the status of unregulated products and services provided. This includes the requirement for website information on regulated activities to be kept separate, and the requirement for firms to have systems and controls, processes, policies, and procedures to achieve certain outcomes for consumers.
Consumers may have recourse to the Financial Services and Pensions Ombudsman (FSPO) in relation to financial services provided to them by regulated firms. The FSPO is the statutory body tasked with the investigation, mediation and adjudication of complaints about the conduct of financial or pension service providers. If a consumer wishes to pursue a complaint in relation to a regulated financial service provider, they must firstly make a complaint to the provider. If the complaint is not resolved, they can then make a complaint to the FSPO.
