CONSUMER PROTECTION CODE

Indications from the Central Bank at its Financial System Conference on 8 November 2023 were that the consultation paper on planned changes to the CPC is likely to be published early in Q1 2024.

From the perspective of the Individual Accountability Framework (IAF), the consultation paper is keenly awaited as the Business Standards under the IAF will be set out in the CPC (the Business Standards will apply to all regulated financial service providers (RFSPs) albeit the Central Bank may apply the standards differently as between different classes of RFSPs).

For more information on the planned CPC consultation, read our insights here: CPC Update: Revised 2024 CPC Regulations to be updated again in 2025. We will publish insights on the key themes from the CPC consultation and the likely impacts for our clients when the consultation paper is published.

CENTRAL BANK INNOVATION HUB AND INNOVATION SANDBOX

The Central Bank's Consultation Paper (CP 156) on its approach to innovation engagement in financial services closes for feedback on 8 February 2024.

In the Consultation Paper, the Central Bank outlined its plans to both enhance its Innovation Hub to drive more informed engagement with industry, and to establish an Innovation Sandbox Programme to focus on "early-stage development of selected innovative initiatives".

For more information, read our insights

CONSULTATION ON NATIONAL PAYMENTS STRATEGY / GENERAL SCHEME OF ACCESS TO CASH BILL

The Department of Finance's Public Consultation on a National Payments Strategy (launched on 12 December 2023) closes for feedback on 14 February 2024.

Against the backdrop of an increasingly digital payments landscape, the consultation suggests that the National Payments Strategy set a roadmap to 2030 for the evolution of the payments system in Ireland. Balancing four key pillars (access and choice, security and resilience, innovation and inclusion, and sustainability and efficiency), the Department wants the Strategy to ensure that Ireland's payment system keeps pace with innovation, while supporting cash access and cash acceptance.

For more information on the consultation, read our insights here: National Payments Strategy: Department of Finance consults on its plans.

The above consultation is closely linked to the proposed Access to Cash legislation. The Minister for Finance published the General Scheme of the Access to Cash Bill in January 2024, and it is on the 'priority for drafting' list in the Government's recently-published Spring 2024 Government Legislation Programme. Under the recent proposals:

  • The Minister would be able to set regional criteria (which could be adjusted based on census data and/or cash demand) stipulating the minimum numbers of ATMs per 100,000 people, the percentage of the population (by specific region) that must be within 10km of an ATM and the percentage of the population (again by specific region) that must be within 10km of a cash service point where cash and cheques can be lodged. The Central Bank will be empowered to assess local deficiencies (regions where it is particularly difficult to access cash), and require designated entities (expected to be, at least initially, the three main retail banks) to address those deficiencies. The Central Bank will be tasked with publishing guidance on local deficiencies before the Bill becomes law.
  • A Central Bank registration framework for ATM operators and cash-in-transit firms (CITs) is planned. ATM operators and CITs would be subject to a similar registration regime to that currently applicable to virtual asset service providers.

The proposals are not expected to move from a General Scheme to a Bill for presentation to the Oireachtas until the Department of Finance has had sufficient time to consider the feedback to the consultation on the proposed National Payments Strategy during the first half of 2024.

For more information, read our insights here: 'Access to Cash' Legislation: Minister for Finance publishes General Scheme of Bill

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.