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In a speech to the Law Society competition section annual conference today, CMA Chief Executive, Alex Chisholm, called for firms to embed a ‘fair competition’ mindset into their corporate cultures. Echoing sentiments expressed by the FCA, Mr Chisholm went on to say that by embedding fair competition expectations into organisations, employees should then act appropriately “in all situations, even where internal supervision is low or rules absent.”
To lead the way in developing a culture of compliance, the CMA has adopted a four pronged approach. Firstly, the setting up of the Competition and Markets Authority (CMA) itself has sent out a strong signal about the competition regime and the need to comply with the law. Secondly, the CMA intends to publicise case studies with a view to maximising deterrent and compliance impacts. This leads on to the third approach; that of adding to the body of research into compliance, in particular “to better understand business’ awareness and understanding of the law.”
Finally the CMA intends to strengthen compliance tools and techniques to “help us to achieve the culture of compliance with competition and consumer law that we want to see across the UK economy.”
Moving forward, Alex Chisholm offers the advice to businesses that compliance should not be a box ticking exercise but instead should sit within corporate strategy and decision making. Only by embedding compliance within the culture can businesses truly understand where they can gain sustainable competitive advantage both through innovation and through introducing strong customer propositions.