Dáil Éireann debate -
Tuesday, 18 Feb 1992

Vol. 415 No. 8

Written Answers. - Cross-Selling.

Phil Hogan

Question:

173 Mr. Hogan asked the Minister for Industry and Commerce if he is proposing to implement any legislation in respect of cross-selling which is an increasingly important means of new business for financial institutions in particular and is glaringly anti-consumer; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

As Minister for Industry and Commerce I am concerned that the generation of new business by the financial institutions would be done in a manner that does not impinge on the rights of the consumer.

However, the responsibility for the regulation of the financial services market as a whole lies primarily with the Minister for Finance and the Central Bank. With regard to the sale of financial products, the Central Bank have said that it would welcome the adoption by the broad financial services industry of a voluntary code of conduct for competition practices. Pending the adoption of such a code, the Central Bank have issued a number of guidelines to the banks in relation to the sale and marketing of savings and credit products which embrace,inter alia, the area with which the Deputy is concerned.