The main way in which we would act on our own initiative is to undertake a review of contracts or consumer notices3 in a particular area of business. This might involve looking at the terms or notices3 used by several firms in a particular sector.
We will, for example, consider launching such a review if multiple consumer complaints or other intelligence lead us to believe that under the CRA3 there may be an issue relating to contracts or notices 3of wider significance to firms and consumers.3
In some cases, it might be appropriate for us to use other powers to deal with issues identified under the CRA3. The powers available to the FCA under the Act may vary depending on the regulated activities which the firm carries out. For example, the use of an3 unfair term might involve a breach of a Principle or a rule in BCOBS,3 COBS, CONC,2 MCOB or ICOBS and the use of an unfair notice might involve a breach of the financial promotions rules3. If so, the FCA might also address the issue as a rule breach.11
However, the use of our powers under the Act will not be possible in all cases where a firm has used an unfair term. If we consider using an enforcement power under the Act, we will do so in accordance with the policy relating to that power as set out in EG.