Best practice update: Melony Holman - unfair contract terms

Wed, 07/03/2012

With the advent of RDR fast approaching, firms are taking the opportunity to review and update their Client Agreements, client propositions and client literature. Everyone is aware of the need for client literature to be ‘clear, fair and not misleading’ - indeed this is Principle 7 of the FSA’s eleven principles which all firms must adhere to. However whilst the Office of Fair Trading (OFT) is the principal enforcer of the Unfair Contract Terms in Consumer Contracts Regulations 1999, the FSA is a ‘qualifying body’ under the Regulations, which means that it too has powers to tackle unfair terms. This is more than likely going to be the case for the FCA. This means that whilst client documents are being reviewed for both the protection of the client and the firm, firms should be mindful of what these Regulations mean to them. Read the full article...