PROD 2.8 Competition considerations for temporary product intervention rules

1When making a temporary or permanent product intervention rule, the FCA will seek to promote effective competition in the interests of consumers where doing so is compatible with its consumer protection objective or integrity objective.

In accordance with section 1E of the Act the FCA also has a competition objective and may make rules, including temporary product intervention rules, specifically to advance competition.

Relevant competition-related considerations for the FCA in the context of temporary or permanent product intervention rules are likely to include:

1. (1)

   Whether there is reasonable scope for the rules under consideration to promote effective competition in the interests of consumers, for instance by addressing consumer behaviours that impair their ability to benefit from competition, by reducing information asymmetries or by correcting misaligned incentives.

2. (2)

   Whether the rule under consideration may have a negative impact on competition factors such as product innovation and barriers to entry for new market participants.

3. (3)

   Whether any negative impact on competition factors is proportionate, having regard to the aims of the rule under consideration.

4. (4)

   Whether alternative solutions may deliver the same intended outcome while having a more positive impact on competition.

5. (5)

   The overall effect of a proposed rule upon the operation of effective competition in the market for financial services, having regard to the interests of consumers.