Dáil Éireann Debate, Tuesday - 15 June 2021
391. Deputy Neale Richmond asked the Minister for Finance if it is at the discretion of insurance brokers to charge a fee to clients for an insurance quote as opposed to paying the brokers fee themselves; if the option for brokers to continue to pay their own brokers fee and provide quotes to clients free of charge is still in place (details supplied); and if he will make a statement on the matter. [31959/21]
Amharc ar fhreagraAs I understand the Deputy's question, I am advised that in some circumstances brokers may charge consumers for a quote due to the research involved in providing their service. Such a decision would be at the discretion of the individual firm. The Minister for Finance has no role in the individual commercial decisions of brokers in this regard. The Central Bank of Ireland also cannot get involved in the commercial decisions of firms, other than to ensure that firms comply with the appropriate rules and regulations and particularly the requirements of the Central Bank’s Consumer Protection Code.
The Deputy should be aware that provision 4.13 of the Code sets out the minimum information that must be included in a regulated entity’s terms of business such as a general statement of the charges imposed directly by the regulated entity. Provision 4.54 of the Code states that prior to providing a service the entity must provide the consumer with a breakdown of ascertained charges that will be passed on to the consumer. Additionally, under Provision 4.55 of the Code, brokers are required to publicly display their fees and charges in a manner that is easily accessible to consumers.
The Deputy may be interested to know that in September 2019 the Central Bank published changes to the Consumer Protection Code 2012 to ensure transparency of commission arrangements and to minimise the risk of conflicts of interest relating to commissions arising where consumers are receiving financial advice from a retail intermediary. These changes took effect on 31 March 2020. Further detail on the new rules on commission arrangements can be found on the Central Bank’s website - www.centralbank.ie/news-media/press-releases/press-release-intermediary-commissions-25-sept-2019
Finally, if a consumer is not satisfied with how a regulated entity is dealing with them, or they believe that the regulated entity is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated entity. If they are still not satisfied with the response from the regulated entity, the response to their complaint from the regulated entity is required to include details for the consumer on how to refer their complaint to the Financial Services and Pensions Ombudsman.
