The latest risk guide from the Institute of Risk Management (IRM) and the Competition and Markets Authority (CMA) features up-to-date case studies with key learnings and examples of best practice to help risk professionals navigate UK competition law. It promotes a culture of compliance led from the top down.
The updated guide follows the first director disqualification because competition law was broken. A managing director of an online poster supplier gave an undertaking not to act as a director of any UK company for 5 years for their part in an online price-fixing cartel.
A director of a company that breaks competition law can be disqualified from acting as a director of a company, or carrying out other specified roles in relation to a company, for up to 15 years.
The risk guide was developed as a joint CMA/IRM project and contributors were senior figures drawn from across both organisations.
In tandem with the updated risk guide the CMA has also published:
- A one page 60 second summary looking specifically at director disqualification with advice for company directors;
- A series of animated videos explaining the main principles of competition law and how they affect small businesses.
Nicola Crawford, CFIRM, Chair of the Institute of Risk Management says: “We welcomed the opportunity to work with the Competition and Markets Authority to produce this document for risk professionals on the risks of contravening UK competition law.
Competition benefits us all. It creates free and transparent markets in which to do business in an environment where competition is fair and honest. It offers some powerful recent and relevant case studies to highlight both unacceptable business practices and show just how easy it can be to get into difficulties if the risks are not properly understood and managed.”
David Currie, CMA Chairman said: “I am delighted that we are working with the IRM again to put the spotlight on the significant risks companies and their directors face if they don’t play by fair rules in business. Company directors have a special responsibility to be well-informed about their company practices and have a critical role to play in ensuring a business complies with the law.
In light of this I want to see anti-competitive behaviour taken as seriously by UK businesses and boards as the risks around bribery, fraud, health and safety and cyber-crime.”
(Source: CMA)
