ENF 20.2 Introduction

This chapter contains guidance on the FSA's formal powers under the Unfair Terms Regulations. This chapter does not contain comprehensive guidance on the Regulations, and the reader should refer to the Regulations themselves for further details.

This chapter also gives guidance on the approach the FSA expects to take before considering whether to exercise its formal powers under the Unfair Terms Regulations.

The FSA has powers as a qualifying body under the Unfair Terms Regulations. The Regulations are not made under the Act. However, the Regulations say that the FSA's functions under the Regulations are treated as functions under the Act. This:

1. (1)

   makes the regulatory objectives relevant to the formulation of policy governing the discharge of the FSA's functions under the Regulations;

2. (2)

   means that any complaints about the FSA's activities under the Regulations can be referred to the Complaints Commissioner;

3. (3)

   allows the FSA to make full use of its information disclosure powers;

4. (4)

   allows the FSA to use its power to give guidance;

5. (5)

   protects the FSA against liability in damages in respect of its activities under the Regulations; and

6. (6)

   allows the FSA to raise fees to fund its activities under the Regulations.

The FSA will publish on its Internet site details of cases that result, through either an undertaking by a firm or injunction obtained from the courts, in a change in the contract terms used by it. The name of the firm will be included. Additionally, the Office of Fair Trading publishes similar details of cases that it and other qualifying bodies have dealt with in accordance with their duties under regulation 15 of the Unfair Terms Regulations. The FSA may therefore pass such details of cases to the Office of Fair Trading for publication on the Office of Fair Trading Internet site.