The European Union (Distance Contracts for Financial Services) Regulations 2026 (S.I. No. 309 of 2026) (the “Regulations“) were signed into law on 30 June 2026, transposing Directive (EU) 2023/2673 (“DMD II“) into Irish law. Member States were required to transpose by 19 December 2025, with its measures applying from 19 June 2026. The Regulations make a series of amendments to the Consumer Rights Act 2022 (the “2022 Act“), including inserting a new Part 5A, a new Schedule 3A and a new section 115A into the 2022 Act. The Regulations also revoke the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 (S.I. No. 853 of 2004).
The Regulations apply to traders who conclude distance contracts for financial services with consumers. Not all financial services contracts fall within scope. Excluded services include: foreign exchange services, money market instruments, UCITS and certain short-term insurance policies. Firms providing financial services to consumers online should review their processes, in particular regarding customer cancellation rights, to ensure compliance with the new rules.
Key provisions under the new Part 5A of the 2022 Act
Pre-contractual information requirements
Firms must provide consumers with the information prescribed in Schedule 3A in good time before a consumer is bound by a distance contract for financial services. The information must be delivered in a clear and comprehensible manner; on a durable medium and in an accessible format. The required information includes (amongst other information), details of the trader, the main characteristics of the financial service, total price (including fees, taxes and charges), consequences of late or missed payments, whether pricing has been personalised through automated decision-making, any relevant environmental or social objectives and details of applicable cancellation rights. Where information is provided electronically, it may be presented in layers, provided it remains accessible and can be viewed, saved and printed as a single document.
Right of cancellation
Consumers may withdraw from most distance contracts for financial services within 14 calendar days without penalty or reason. For personal pension products, the period is 30 days. The cancellation period runs from the later of the date the contract is concluded or the date the consumer receives the terms and conditions and required pre-contractual information. Where the required information is never provided, the cancellation period extends to 12 months and 14 days from the date of contract conclusion. A trader may only charge for services provided before cancellation, where the charge is proportionate, and not a penalty, and only where the consumer was duly informed and had requested performance of the contract before the end of the cancellation period.
The right to cancel does not apply to certain distance contracts where the price is subject to fluctuations in the financial market outside of the trader’s control, which may occur during the cancellation period (eg, foreign exchange, money market instruments and short-term insurance policies of less than one month’s duration).
Online cancellation function
Traders who conclude contracts through an online interface must provide an online cancellation function pursuant to Section 115A. The cancellation function must be:
- clearly labelled with the words “cancel contract here” or similar;
- prominently displayed on the online interface and easily accessible by the consumer; and
- continuously available throughout the cancellation period.
Where the consumer wishes to exercise his or her cancellation right, the online cancellation function must enable the consumer to submit an online cancellation statement to the trader. This statement must enable the consumer to provide the following information to the trader: the consumer’s name; the identity of the contract being cancelled; and details of the electronic means by which confirmation of the cancellation will be sent to the consumer.
Adequate explanations and right to human intervention
Traders must provide consumers with adequate explanations, free of charge, before entering into a distance contract for financial services, to enable the consumer to assess whether the proposed contract and ancillary services are suitable for the consumer’s needs and financial situation.
The adequate explanations will include:
- the pre-contractual information;
- the essential characteristics of the contract and any ancillary services proposed; and
- the specific effects that the contract may have on the consumer, including (where applicable) the consequences of late payment or payment default.
In addition, where a consumer engages with the trader’s online interface before the consumer is bound by a distance contract, they have the right to request and obtain human intervention from the trader and, in justified cases, after the distance contract has been concluded.
Protections against dark patterns
The Regulations prohibit traders from having manipulative online interfaces, commonly referred to as “dark patterns“. In particular, traders must not design, organise or operate their online interfaces in a manner that deceives or manipulates consumers or otherwise distorts their ability to make free and informed decisions. Traders must also provide consumers with clear information on the main parameters determining how offers are ranked on their interface.
Enforcement
It is an offence for traders to fail to comply with their obligations under Part 5A of the 2022 Act. Summary proceedings for such offences may be brought and prosecuted by the Competition and Consumer Protection Commission (“CCPC”) or, where appropriate, by the Central Bank of Ireland (“CBI”).
Discretionary measures
Ireland exercised two of the five national discretionary measures available under DMD II. The discretionary measures exercised concern the right of withdrawal under the Consumer Credit Directive and Mortgage Credit Directive. The Regulations provide that mortgage contracts that are currently exempt under the Mortgage Credit Directive, but fall within the scope of the Regulations, are afforded the 30-day withdrawal period under the Mortgage Credit Directive framework. This is not fully replicated in respect of the Consumer Credit Directive, as the Regulations simply state that where a consumer is entitled to a right of withdrawal pursuant to the Consumer Credit Directive framework, then the withdrawal period under the Consumer Credit Directive applies, but does not address contracts exempt under the Consumer Credit Directive.
What businesses should do now
The Regulations are now in force in Ireland and apply to financial services contracts concluded at a distance. Digital financial service providers should therefore take the following steps:
- Review pre-contractual disclosures to confirm they cover every prescribed item and are delivered on a durable medium in good time.
- Implement a compliant online cancellation function, clearly labelled and prominently displayed, across all relevant digital products.
- Review online interfaces for any dark patterns, particularly any logic that gives undue prominence to certain offers or choices.
- Ensure a route to human intervention is readily accessible within automated customer journeys.
- Map products to identify which are governed by the Regulations and which fall under an existing sectoral regime.
Contact Us
If you have any questions on anything contained in this article, please contact any member of our Technology and Innovation Group, Financial Institutions Group or your usual Matheson contact.
