Central Bank of Ireland unveils new rules for commission disclosures by financial intermediaries

Maria Nikolova

Ireland will introduce new requirements on transparency for consumers and prohibitions on certain types of commission arrangements.

The Central Bank of Ireland has earlier today published a set of new rules to be included in the Consumer Protection Code 2012 on the payment of commission to financial intermediaries.

The rules involve new requirements on transparency for consumers and prohibitions on certain types of commission arrangements. The purpose of these rules is to ensure transparency of commission arrangements between financial intermediaries, such as brokers and financial advisers, and product producers, such as banks and insurance firms, and to reduce the risk of conflicts of interest relating to commissions.

Under the new rules, intermediaries will be required to publish details of the commissions they receive from product producers on their websites. Furthermore, the Central Bank will no longer allow intermediaries to label themselves and their regulated activities as ‘independent’ if they accept and retain commission when providing advice.

Commission linked to targets that do not consider a consumer’s best interests will be considered a conflict of interest and will be prohibited. Free “hospitality perks” for intermediaries such as golf trips and sporting event tickets will not be permitted under the new rules. Any commission received in the form of non-monetary benefits must demonstrably enhance the quality of the service to the consumer in order to be permitted.

Gráinne McEvoy, Director of Consumer Protection, commented:

“These amendments to the Consumer Protection Code will reduce the potential for bias on the part of financial intermediaries and will provide consumers with access to more information about how intermediaries are paid. Consumers will also be able to have confidence that when they receive advice that is marketed as being independent, that this advice is truly independent.”

The new rules are set to come into effect on March 31, 2020.

Read this next

Digital Assets

Luxembourg’s regulator warns on false regulation of Crypto Capital Profits

The regulator of Luxembourg’s financial markets, the Commission de Surveillance du Secteur Financier (CSSF), has warned that a firm claiming to be authorized under the name Crypto Capital Profits is in fact not licensed to carry out business from within its jurisdiction.

Institutional FX

FINRA fines Wedbush $900K over reporting violations

The Financial Industry Regulatory Authority continues to take disciplinary actions against financial services firms for providing inaccurate securities trading information.

Digital Assets

Bitkub investigated by Thai regulator in ‘wash trading’ case

Thailand’s Securities and Exchange Commission has targeted Bitkub over allegations of inaccurate reporting and wash trading on its cryptocurrency platform.

Crypto Insider

Crypto.com secures approval to launch its services in France

Crypto.com has registered its cryptocurrency services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Inside View

How to offer iOS compliant trading apps? Editorial by Chris Rowe

Webtraders are becoming increasingly important for FX and CFD brokers as more and more of their clients are trading using their mobiles. 

Institutional FX

SpiderRock deploys Eventus trade surveillance for futures and options offering

“As we have begun to provide direct market access as a routing broker and grown in our futures offering, which is subject to a different regulator, we wanted to make sure we chose a trade surveillance platform that has all the tools that we need, a format we can review easily, and capabilities to demonstrate to regulators that we have the proper trade surveillance procedures in place. Validus checks all the boxes for us.”

Industry News

Space and Time raises $20 million to grow its decentralized data warehouse

“We look forward to seeing the ways in which Space and Time will allow the business logic in centralized systems to be automated and connected directly to smart contracts.”

Digital Assets

Mastercard, hi app partner to issue cards with NFT avatars

In partnership with Mastercard, crypto and fiat financial app hi is launching what it calls “the world’s first debit card featuring NFT avatar customization.”

Digital Assets

Wirex to support government of Uzbekistan to adopt blockchain

“We’re excited to work alongside the Uzbekistan Direct Investment Fund in order to help the sector thrive, enrich the financial ecosystem there and set a benchmark for other countries, and ultimately expand.”