UNFCOG 1.1 Application and purpose

1This Guide explains the FCA's policy on how it will use its powers under the Unfair Terms Regulations (the Regulations).

We have agreed with the Office of Fair Trading ('OFT') that the FCA will consider the fairness (within the meaning of the Regulations) of financial services contracts for carrying on any regulated activity.

The OFT will consider the fairness of other financial services contracts which involve activities governed by the Consumer Credit Act 1974. This includes second-charge mortgage loans, buy-to-let mortgages, and non-mortgage personal loans (including credit cards). Also, where the firm concerned is not a firm or an appointed representative, the OFT may take enforcement action under the Regulations in respect of financial services contracts involving the carrying on of regulated activities (see EG 10.16 and 10.17).

This Guide applies to:

1. (1)

   firms;

2. (2)

   appointed representatives; and

3. (3)

   other persons, whether or not a person with permission, who use, or recommend the use of, contracts to carry on regulated activities.

This Guide uses "firm" to refer to all such persons.