Protecting the stability of financial institutions, and thus the deposits etc of their customers, is a core objective of the regulatory system. “Consumer Protection” is used here in the narrower sense of measures to deal with how individual financial institutions deal with their customers.
The Consumer Protection mandate of the Regulatory Authority is contained in a number of different pieces of legislation.
Chapter 2 of Part IIIA of the Central Bank Act 1942 (as amended) provides for the core functions of the Authority in this area, and specifically for the functions of the Consumer Director.
Section 33S lists the responsibilities of the Director under various pieces of legislation. The Consumer Credit Act 1995 (informal consolidation) is the key piece of legislation dealing with the duties of financial institutions in dealing with their customers and the related supervisory functions of the Consumer Director.
Legislation providing for payment to customers of a financial institution that can no longer meet its obligations to its customers also falls under the broad “Consumer Protection” heading. These provisions are set out in different pieces of sectoral legislation:
Deposit Protection Scheme(Credit Institutions)
Insurance Compensation Fund (Insurance Undertakings)
Legislation in relation to Cross Border Payments in Euro also fall under the broad “Consumer Protection “heading.