Central Bank launches insurance guide

A new information leaflet for consumers about buying investment and insurance products was launched by the Central Bank yesterday. Saving and Investing - Know Your Rights, includes an investment checklist on the consumer's financial aims and the types of professional advice available.

The leaflet, produced by the Central Bank's new Consumer Information Unit, warns the public of the danger signs when investing and gives advice on how to complain.

Speaking at the launch, the Bank's assistant director general, Dr Liam O'Reilly, said that consumer information was "a new departure" for the Bank. "We hope that this initiative will encourage consumers to ask the right questions and arm themselves with information before making important financial decisions," he said.

The leaflet is the first in a series to be launched in advance of the establishment of the Irish Financial Services Regulatory Authority (IFSRA), which is expected to be fully operational early next year.

Mr Brian Patterson, the chairman of IFSRA, said that consumer information and education would form "a very big part" of work in IFSRA.

"I believe when the market works well it works for the consumer," he said, adding that transparency, choice and competition were needed to make this happen.

Mr Patterson, who is also chairman of the Irish Times Ltd, said IFSRA would be tough on anti-competitive practices and mis-selling and that a correct balance would need to be struck between "making sure the consumer gets a fair shake" and protecting industry bodies against insolvency.

Under IFSRA, institutions will be fined for abusing the codes of conduct laid down by the Central Bank. They will then have the right to appeal to an appeals tribunal.

Saving and Investing - Know Your Rights will be distributed through public libraries, citizen information centres, Legal Aid Board offices and certain trade unions. Copies are also available directly from the Central Bank, lo-call 1890 200 469, and on the Bank's website.