On 24 November 2023, the Central Bank of Ireland (CBI) published a notice of intention confirming that it intends to recognise sustainability knowledge and competence as part of the Minimum Competency Code 2017 (MCC), with effect from 1 January 2025.
In summary, the CBI proposes to:
- Update the competencies for retail financial products under Appendix 3 of the MCC to include competencies relating to sustainability generally for all retail financial products (including insurance products).
- Incorporate additional amendments to the MCC to reflect the suitability requirements under the Markets in Financial Instruments Directive II (MiFID II) and the Insurance Distribution Directive (IDD).
- Recognise sustainability training for CPD purposes “where directly relevant to a person’s role“.
The CBI considers these changes necessary due to the increasing appetite for, and growth in, financial services activity involving products with sustainability-type features. Firms’ minimum professional competencies must be updated accordingly to ensure that those selling or advising on sustainable financial products and services are suitably qualified to do so.
The CBI plans to publish an addendum to the MCC to effect these changes from 1 January 2025. Queries are invited to be submitted to the CBI by 5 January 2024.
Please click here to view the notice of intention in full.
If you have any questions on this topic, please contact any member of the William Fry Insurance Team or your usual William Fry contact.
Contributed by Jack Stokes