Central Bank Ramps Up Rule-Making Activity

One of the notable features of recent financial services legislation has been to give the Central Bank of Ireland (the "CBI") power to make regulations concerning a broad range of financial services activities ("Regulations"). This new power is important because a breach by a regulated financial service provider of the Regulations will give its customer a right to sue for damages suffered as a result of the breach. Although the CBI is not obliged to consult widely before making Regulations, it has, in fact, done so to date. This is to be welcomed. However, the following are currently the key issues:

• The CBI is broadening its customer protection mandate beyond consumers (i.e. private individuals acting outside the course of a trade, business or profession) to small and medium-sized enterprises ("SMEs"); and