TOPIC 3 - LEGAL FACTORS 3.6

TOPIC 3 - LEGAL FACTORS 3.6

1. There are other legal factors that can have an impact on providers and consumers of financial products and services.

   • These include laws relating to discrimination, employment, health and safety and consumer protection.
     • These can affect how a company operates for example its costs and the prices it charges its customers for its products.

2. UK LEGALISATION

   • Companies must comply with these requirements
     • Company law
     • Employment legalisation
     • Tax law
     • Proceeds of crime and anti-terrorism legislation
     • Accounting standards
   • When a court case between a customer and a financial services provider goes against the provider, other customers who have similar cases are likely also to take it to court.
   • The office of fair trading and the competition commission were closed and were divided between the financial conduct authority and the new agency which is the competitive and markets authority.
     • the CMA are repsponsible for
       • Investigating merges which could restrict competition
       • Conducting market studies and investigations where there may be competition and consumer problems
       • Investigating where there may be breaches of the UK or EU laws
       • Bringing criminal proceedings against individuals who commit an offence
       • enforcing consumer protection legislation
       • Co-operating with sector regulators
       • Considering regulatory references and appeals

3. EUROPEAN LEGISLATION

   • European union
     • Directive
       • Domestic legislation
         • UK
           • Regulations
   • Regulations are directly applicable. They become law in the EU as soon as they come into force.
   • Directives can be seen as instructions issues by the European commission.
     • They set out what is to be achieved and the county can decide for itself how to do this.
   • The European commission plans to bring into force a large number of laws and directives over the next few years that will affect UK financial services businesses that deal only with people in the UK and also those businesses that want to sell to customers in other European countries.