Financial Services Industry (Hansard, 12 July 1999)

§ Dr. Howells

[holding answer 1 July 1999]: The duties of the Director General of Fair Trading (DGFT) in relation to the financial services industry under the Consumer Credit Act 1974 will not change under the Financial Services and Markets Bill. When the prohibitions in the Competition Act 1998 come into force on 1 March 2000, agreements between undertakings, decisions by associations of undertakings, and concerted practices which may affect trade in the UK and have as their object and effect the restriction, distortion or prevention of competition will be prohibited subject to certain exclusions. Any conduct on the part of one or more undertakings which amounts to the abuse of a dominant position affecting trade within the UK and which may affect trade in the UK will also be prohibited. These prohibitions will apply to the financial services industry subject to certain exemptions and exclusions. The DGFT will have powers to carry out investigations if he has reasonable grounds for suspecting either of these prohibitions has been infringed, to bring infringements to an end, and to impose penalties. The DGFT will continue to scrutinise the rules of the Financial Services Authority, self regulatory organisations, investment exchanges and clearing houses using his powers in section 122 of the Financial Services Act 1986 and will report to the Treasury on any that appear to him to restrict, distort or prevent competition to a significant extent.