ENFG App 1.1 Injunctions

The FCA has powers under the Act to seek injunctions for breaches of a relevant requirement or in cases of market abuse. It also has powers under the courts’ inherent jurisdiction – for example, to apply for asset freezing injunctions. The broad test the FCA will apply when it decides whether to seek an injunction is whether the application would be the most effective way to deal with the FCA’s concerns.

The FCA also has powers under Schedule 3 to the CRA to seek an injunction if it considers that a term or notice in a consumer contract is unfair, purportedly restrictive or exclusionary or non-transparent within the meaning of the CRA. Schedule 3 to the CRA provides the process the FCA should follow in these circumstances.

For contracts entered into before 1 October 2015, the Unfair Terms Regulations still apply. The pre-1 October 2015 version of the Enforcement Guide contains the FCA’s approach and policy relating to its powers under the Unfair Terms Regulations.