FCA publishes proposed guidance on voluntary redress schemes under the Competition Act 1998

The FCA has published a proposed guidance on voluntary redress schemes under the Competition Act 1998 and invites views on the proposed guidance, which explains how we will exercise our powers to approve and enforce redress schemes under CA98.

Under changes made by the Consumer Rights Act 2015, we have new powers under the Competition Act 1998 (CA98) allowing us to approve a redress scheme in relation to an infringement of the prohibitions on anti-competitive behaviour in CA98 or the Treaty on the Functioning of the European Union. In accordance with the statutory duty on us under CA98, we are publishing guidance on the approval and enforcement of such redress schemes.

This guidance is aimed at firms looking to provide compensation under a CA98 redress scheme. It will also be useful to those who set up or recommend redress schemes to us under CA98. It does not alter or affect any other mechanism available to us for providing redress.

Although this consultation does not directly affect consumers, it does explain how we will review and approve redress scheme applications. Therefore, consumers, and organisations that advocate consumer interests, may be interested to learn more about how we will use our new redress scheme approval powers.

See the FCA statement and the consultation paper here. Replies are due by 15 February 2016.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

Posted in UncategorizedTagged

Leave a Reply

Your email address will not be published. Required fields are marked *