Release Date: 30th November 2023
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) issued a final notice concluding that Dollar East (International Travel & Money Transfer) Ltd, Hafiz Bros Travel & Money Transfer Limited, and LCC Trans-Sending Limited (trading as Small World) and its parent company Small World Financial Services Group Limited, infringed competition law by coordinating pricing practices. This infringement occurred between 18 February 2017 and 31 May 2017, involving agreements to coordinate on the retail exchange rate and transaction fees for UK to Pakistan remittance services in Glasgow. The FCA imposed financial penalties of £3,600 on Dollar East, £11,200 on Hafiz Bros, and £139,500 on Small World and its parent company.
Key Takeaways for Other Firms:
- Avoid Price Coordination: Firms must not engage in discussions or agreements with competitors about pricing strategies, including exchange rates and transaction fees.
- Maintain Independent Pricing: Set and maintain your pricing strategies independently without influence from or collusion with other market players.
- Compliance and Monitoring: Establish robust compliance programs to monitor and ensure adherence to competition laws. Regular training and internal audits can help in maintaining compliance.
- Transparent and Fair Practices: Ensure that all business practices are transparent and fair to avoid any actions that could be perceived as anti-competitive.
Conclusion:
The FCA’s decision underscores the importance of adhering to competition laws and maintaining independent pricing strategies. Firms must ensure compliance to avoid substantial penalties and reputational damage.
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