Alternative credit arrangements in the Business Retail Market – a guidance document
| Date | 29 April 2021 |
April 2021
Alternative credit arrangements in
the Business Retail Market – a
guidance document
Alternative credit arrangements in the Business Retail Market – a guidance document
1
About this document
Our Review of Incumbent Support for Effective Markets (‘Project RISE’), published in August
2020, found that overall there was scope for incumbent companies (also referred to in this
document as Wholesalers) to play a more active role in supporting the development of
competitive markets. In particular, we identified that incumbent companies were, in our view
wrongly, using competition law as reason not to collaborate or as reason not to be more
responsive to the needs and specific circumstances of individual market participants. This
covered a range of issues, including providing and declining proposals for alternative credit
arrangements. In our view, this ‘one size fits all’ approach is not conducive to a dynamic and
innovative market that can deliver benefits to customers and society, and as a result we
committed to providing guidance targeted at those issues where we feel support to
Wholesalers and Retailers is most needed. The availability and operation of alternative credit
arrangements was one such area where we believed further guidance was appropriate.
This document therefore sets out our expectations of Wholesalers in their approach to
offering alternative credit arrangements in the Business Retail Market. It sets out high level
guiding principles and behaviours that we expect Wholesalers to act within when considering
their approach to alternative credit arrangements. The guidance is also intended to help
provide clarity around some of the issues that Wholesalers have cited as a barrier to offering
alternative credit arrangements.
It is for Wholesalers to ensure that they are complying with their obligations under
competition law, and to take their own legal advice, where necessary.
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