gabriel makhlouf : protecting consumers remarks by mr gabriel makhlouf, governor of the central bank of ireland, at the publication of the oecd review of the central bank of ireland's consumer protection supervisory functions, dublin, 16 december 2024. * * * thank you and welcome to this special event to mark the publication of the oecd's report on the central bank's financial consumer protection role. this is the first review of its kind by the oecd and, given our shared commitment to financial consumer protection, we at the central bank are very pleased to be a pioneer in this work with you. we put ourselves forward for this review as we welcome the opportunity for our work to be assessed against global standards by an independent, objective third party. and we are very conscious of the oecd's central role in establishing the global standards through the g20 / oecd high - level principles on financial consumer protection. consumer protection is at the heart of everything we do in the central bank, aligned to our constant and predominant aim being the welfare of the people as a whole. over the last decade, we have, alongside other public institutions, played a significant role in strengthening the consumer protection framework in ireland, to ensure that our system and protections are in line with those global standards. while this strengthening of the framework has improved supports and outcomes for consumers, we also recognise the importance of ensuring that the framework – like all frameworks – continues to adapt and evolve so that it remains fit for purpose and futureready. the challenges and risks facing us are clear. the global economy is fragmenting and countries across the globe are undergoing significant economic transitions – in demography, in technology, in climate – while also experiencing a period of unprecedented innovation. consumers are adapting and in the face of a changing ecosystem, central banks, regulators, and businesses have to adapt, evolve and transform as well. the value provided by the oecd, given their knowledge of how countries and regulators across the globe are facing into these challenges, is clear. for our part, we are changing how we work and ensuring our frameworks reflect an increasingly digital world. as the financial services sector evolves, so too must our approach to supervision and regulation to ensure it remains fit for purpose. this need to adapt, evolve and transform is at the core of our strategy. a key element of this is the work we are finalising on our review of the consumer protection code

it isn ’ t. it is already having an impact on the world ’ s economies and the period of transition to the world ’ s net zero target is shortening every day. at the central bank, we need to decide how best to respond to the challenges and ensure the financial system continues to operate in the best interests of consumers and the wider economy. at a minimum, as the guardians of financial stability, we want the financial system to remain resilient to the risks posed by climate change, so that it is capable of supporting the transition to net zero. one thing is very clear. central banks – including the central bank of ireland – cannot solve the problem of climate change on their own. the challenge requires action on the part of the whole community, of businesses, households, and the entire financial system as well as policymakers. the insurance industry is at the front end of physical risks and they really matter for the transition given the role in channelling savings to support investment. later this month, our new climate risk and sustainable finance forum – and i can confirm that insurance ireland will be invited to join it – will bring together representative bodies, financial sector participants, and climate change experts to build a shared approach to the understanding and management of the financial risks and opportunities posed by climate change. we welcome engagement with industry on this important issue, including our recent meeting with the insurance ireland climate risk working group. we will soon consult on draft guidance on climate change risks for insurance undertakings, the aim being to provide support and clarify expectations on how firms can address the climate change risks in their business. i strongly urge you to consider how your firm, and the wider industry, can support the change to a more sustainable future. let me move to some other areas of focus. we recognise the benefits which many firms derive from the relationships with the wider group to which they belong. innovation in the delivery of services, the drive for increased flexibility and agility, often drive the need for group support, as a key strategic tool to enable regulated firms to manage these changes. however, our work has identified areas where oversight of these relationships should be strengthened. in a number of firms – including those with otherwise good risk management frameworks – the risks associated with reliance upon related group entities are often not considered to a sufficient degree, perhaps due to intragroup arrangements being perceived by some as being ‘ less risky ’ than external arrangements. in our view, firms should apply similar standard of governance and oversight to intra - group