NCA assumes consumer information and education functions of Financial Regulator
9 March 2010
Transparency of costs for consumers in the financial services market, financial education for consumers and reduced competition in banking are now additional priority areas for The National Consumer Agency (NCA), it announced today.
The announcement was made as the NCA assumes the consumer information and education function of the Financial Regulator.
Legislation which will transfer these responsibilities on a statutory basis to the NCA is being drawn up at present.
In the interim, the NCA has assumed responsibilities in the areas of consumer information and education under a transfer agreement with the Financial Regulator, which includes the secondment of expert staff from the Financial Regulator to work on the integration of these important functions into the wider remit of the NCA.
This does not include the transfer to the NCA of either regulatory or enforcement powers in the financial services sector. These are and will remain the remit of the Central Bank and the Financial Regulator.
Ann Fitzgerald, Chief Executive of the NCA, said: "Today's announcement is good news for consumers in Ireland who, for the first time, will have a single body to represent their interests on consumer issues including personal finance matters.
"They will also benefit from having an independent one-stop shop for consumer rights and personal finance information. This makes sense. Consumers now have a resource to help them make informed decisions which hopefully will lead to lower costs and more savings on everything from groceries and electricity to investment products and loans.
"The financial services market is changing almost daily and consumers need to be equipped with the right information in order to make the best decisions possible when committing to financial products and services.
"The NCA will place a particular emphasis on financial education for consumers, transparency of costs and declining competition between financial providers."
Workplace Financial Education Programme
The NCA also announced today that it plans to pilot a Workplace Financial Education Programme based on the commitments made in the report of the Steering Group on Financial Education, where volunteers from industry and other stakeholders support the delivery of personal finance education in the workplace and the community.
The Financial Regulator set up this steering group in 2006, to propose and recommend further individual and collective actions to enhance financial capability in Ireland. The steering group members made commitments under the heading "Provision of volunteers from industry and other stakeholders to support the delivery of personal finance education in the workplace and the community", i.e. the Workplace Financial Education Programme.
"At the end of the day Irish consumers want to make well informed, smart choices," said Ms Fitzgerald.
"People have become more careful about what, where and how they spend their money. We have seen a serious shift in shopping habits where the household budget is concerned. People have learned to vote with their feet, spread their shopping basket and switch provider where necessary. We would like to see this trend mirrored as far as possible in the personal finance sector.
"The NCA is committed to providing information to help consumers make the best choices at all times and the experienced members of staff moving from the Financial Regulator will be an invaluable resource to the NCA and to consumers ensuring the transition is as seamless as possible," Ms Fitzgerald concluded.