The Netherlands Authority for the Financial Markets (AFM) has today published the outcome of a review of the consumer protection function of the Central Bank of Ireland (“the Central Bank”). It is the first time that the G20/OECD High Level Principles on Financial Consumer Protection (2011) have been used as a reference point for such a review. The review is part of a wider mutual learning programme between the Central Bank and the AFM.
The review is the result of a joint initiative taken by the Central Bank and the AFM to carry out reciprocal reviews of their consumer protection frameworks. The main objective of this initiative is to engage in a mutual learning exercise for both supervisory authorities, providing an opportunity to facilitate knowledge sharing between the two regulatory authorities in relation to the best practices and challenges faced in each jurisdiction.
It is the first time that the G20/OECD High Level Principles on Financial Consumer Protection (2011) have been used as a reference point for such a review. These high level principles were developed by the Task Force on Financial Consumer Protection of the OECD Committee on Financial Markets (CMF) under the Chairmanship of Theodor Kockelkoren, Board Member of the AFM.
Mr Kockelkoren, commenting on the publication of the report, said: `Considering that the Central Bank’s consumer protection mandate is relatively new, we have been very impressed by how much has been achieved in a relatively short time frame. I am also pleased to see that this part of the review has already proven its worth as a mutual learning exercise. It clearly serves as a way to build upon and give practical application to the recently developed OECD international standards for financial consumer protection. I look forward to working with our Irish colleagues on the reciprocal review”.
The Central Bank will commence its external review of the AFM later this year. The AFM’s participation in this mutual exercise represents an additional opportunity to invite external scrutiny of our supervisory approach in general and in particular, our consumer protection function to see how we measure up to international standards and the expectations of consumers and other stakeholders.
Both supervisory authorities have expressed their strong commitment to an on-going process of learning through dialogue and the exchange of views and lessons learned.
The AFM is committed to promoting fair and transparent financial markets.
As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.