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Working With Financial Authorities Moses Musantu Competition and Consumer Protection Commission Sixth Annual African Dialogue Conference September, 2014. Presentation Outline. Introduction Regulatory Environment CCPC’S interface with Financial Authorities

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Presentation Outline

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  1. Working With Financial AuthoritiesMoses MusantuCompetition and Consumer Protection CommissionSixth Annual African Dialogue ConferenceSeptember, 2014 Competition and Consumer Protection Commission

  2. Presentation Outline • Introduction • Regulatory Environment • CCPC’S interface with Financial Authorities • Case studies of Collaboration with financial authorities • Challenges and wayforward Competition and Consumer Protection Commission

  3. Introduction • The relationship between CCPC and Financial Authorities is very critical in a liberalised economy to ensure that there’s effective competition and that consumers are protected against unfair trading practices • CCPC has concurrent jurisdiction in so far as enforcement of competition and consumer Protection Act is concerned • However, CCPC works with financial sector regulators in order to enhance the enforcement of the law Competition and Consumer Protection Commission

  4. Regulatory Environment • Interaction with financial regulators in Zambia Pensions and Insurance Authority Securities Exchange Commission CCPC Bank of Zambia Competition and Consumer Protection Commission

  5. CCPC’S interface with Financial Authorities • In areas of concurrent jurisdiction, the co-operation between CCPC and financial authorities is of paramount importance. • Essentially financial authorities are there to regulate and monitor the operations of financial markets so as to enhance macroeconomic development. • CCPC has signed MoUs with local financial authorities with the view of enhancing enforcement coordination of conducts relating to Competition and Consumer Protection as guided by Section 42 of the CCPA Competition and Consumer Protection Commission

  6. Case studies of Collaboration with financial authorities Working with PIA Working with SEC • CCPC solicited PIA’s guidance when it was investigating unfair trade practices in the insurance sector e.g African Life Assurance cases • It was alleged that ALA was deducting premiums from its former clients despite being notified • CCPC always engage SEC when conducting a market review for a possible merger in a given sector • CCPC sits on the market regulations Committee • CCPC has asked Board to allow SEC to sit on TC of CCPC Competition and Consumer Protection Commission

  7. Working with BoZ • Worked with BoZ in investigating misleading, unfair contract terms and other unfair trade practices against Banks & Micro Financial Institutions • Worked on anticompetitive trade practices against International Money Transfer operators (IMTOs) following a complaint from BoZ • The two ITMOs (Western Union & MoneyGram) had exclusivity clauses in their agreements with local agents barring them not to have more than one ITMO. Competition and Consumer Protection Commission

  8. Working with BoZ Cont • The Commission’s investigations revealed that the agreements were anticompetitive as they were resulting into substantial lessening of competition in the relevant market • The Commission ordered the ITMOs to remove exclusive clauses in their agreements with agents • The effect: The local agents are now able to have more than one ITMO e.g ZamPost now handles both MoneyGram & Western Union • Consumers have a choice to make about their preferred ITMO Competition and Consumer Protection Commission

  9. Challenges & Wayforward Challenges Wayforward • Lack of corporation sometimes hinders the progress of investigations • There has been a push to remove the powers of CCPC to investigate consumer violations in the financial sector • Balancing the issue of confidence in the sector and removing the sector of RBPs • CCPC will continue to lobby the regulators to continue collaborating within the framework of the MoU • CCPC has employed advocacy programmes to share the importance of it investigating consumer violation in the financial sector Competition and Consumer Protection Commission

  10. Challenges & Wayforward Challenges Wayforward • Financial authorities may want to ensure survival of industry e.g. insurance wants a minimum price for the insurance sector • However, CCPC sees this conduct as cartelistic • Need for financial authorities to enhance their capacities to monitor their sectors without promoting Restrictive Business Practices (RBPs) Competition and Consumer Protection Commission

  11. THE ENDMay God Bless You All Competition and Consumer Protection Commission

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