Central Bank warns firms over unfair contract terms

A Central Bank review has identified weaknesses in how investment firms provide information on costs and charges to consumers.

The review highlighted a number of unfair contract terms, where firms had unreasonably sought to limit their liability to clients

The Central Bank said it has written to all firms in this sector setting out all of the issues identified from the thematic review and the steps to be taken by firms to address these issues.

"The Central Bank expects the board of directors and senior management in regulated firms to ensure that they embed a culture of treating consumers fairly within their firm," director of consumer protection, Bernard Sheridan, said.

He said the bank expects all regulated firms to have appropriate governance arrangements in place to ensure that any costs and charges applied to consumers are disclosed in a fair, clear and transparent way throughout the business relationship with the consumer.

“Firms need to take on board this feedback in order to deliver a better outcome for their customers,” he added.