UNFCOG 1.1 Application and purpose

This Guide explains the FCA's policy on how it will use its powers under the CRA in relation to unfair terms and consumer notices.

The Unfair Terms Regulations will continue to apply to contracts entered into before 1 October 2015. Firms (see 1.1.5G) should refer to the previous version of this Guide for an explanation of the FCA’s policy regarding the Unfair Terms Regulations.

The unfair terms provisions in Part 2 of the CRA apply to consumer contracts entered into on or after 1 October 2015 and consumer notices issued on or after 1 October 2015.

In this Guide, ‘consumer notice’ has the same meaning as in section 61 of the CRA.

We have agreed with the Competition and Markets Authority ("CMA") that the FCA will consider the fairness and/or transparency (within the meaning of the CRA) of those financial services contracts and consumer notices specified in the Memorandum of Understanding between the CMA and the FCA on the use of concurrent powers under consumer protection legislation (http://www.fca.org.uk/fca-cma-consumer-protection-mou).

Where the firm concerned is not a firm or an appointed representative, the FCA will liaise with the CMA or (as appropriate) another CRA regulator.

This Guide applies to:

1. (1)

   firms;

2. (2)

   appointed representatives;

3. (3)

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

4. (4)

   electronic money issuers; and

5. (5)

   payment service providers.

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