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Presentation OutlineIntroductionRegulatory EnvironmentCCPC’S interface with Financial AuthoritiesCase studies of Collaboration with financial

authoritiesChallenges and wayforward

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IntroductionThe relationship between CCPC and Financial

Authorities is very critical in a liberalised economy to ensure that there’s effective competition and that consumers are protected against unfair trading practices

CCPC has concurrent jurisdiction in so far as enforcement of competition and consumer Protection Act is concerned

However, CCPC works with financial sector regulators in order to enhance the enforcement of the law

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Regulatory EnvironmentInteraction with financial regulators in

Zambia

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CCPC

Bank of Zambia

Securities Exchange

Commission

Pensions and

Insurance Authority

CCPC’S interface with Financial AuthoritiesIn areas of concurrent jurisdiction, the co-operation

between CCPC and financial authorities is of paramount importance.

Essentially financial authorities are there to regulate and monitor the operations of financial markets so as to enhance macroeconomic development.

CCPC has signed MoUs with local financial authorities with the view of enhancing enforcement coordination of conducts relating to Competition and Consumer Protection as guided by Section 42 of the CCPA

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Case studies of Collaboration with financial authoritiesWorking with PIA Working with SECCCPC solicited PIA’s

guidance when it was investigating unfair trade practices in the insurance sector e.g African Life Assurance casesIt was alleged that ALA

was deducting premiums from its former clients despite being notified

CCPC always engage SEC when conducting a market review for a possible merger in a given sector

CCPC sits on the market regulations Committee

CCPC has asked Board to allow SEC to sit on TC of CCPC

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Working with BoZWorked with BoZ in investigating misleading,

unfair contract terms and other unfair trade practices against Banks & Micro Financial Institutions

Worked on anticompetitive trade practices against International Money Transfer operators (IMTOs) following a complaint from BoZ

The two ITMOs (Western Union & MoneyGram) had exclusivity clauses in their agreements with local agents barring them not to have more than one ITMO.

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Working with BoZ ContThe Commission’s investigations revealed that

the agreements were anticompetitive as they were resulting into substantial lessening of competition in the relevant market

The Commission ordered the ITMOs to remove exclusive clauses in their agreements with agents

The effect: The local agents are now able to have more than one ITMO e.g ZamPost now handles both MoneyGram & Western Union

Consumers have a choice to make about their preferred ITMO

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Challenges & WayforwardChallenges WayforwardLack of corporation

sometimes hinders the progress of investigations

There has been a push to remove the powers of CCPC to investigate consumer violations in the financial sector

Balancing the issue of confidence in the sector and removing the sector of RBPs

CCPC will continue to lobby the regulators to continue collaborating within the framework of the MoU

CCPC has employed advocacy programmes to share the importance of it investigating consumer violation in the financial sector

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Challenges & Wayforward

Challenges WayforwardFinancial authorities

may want to ensure survival of industry e.g. insurance wants a minimum price for the insurance sector

However, CCPC sees this conduct as cartelistic

Need for financial authorities to enhance their capacities to monitor their sectors without promoting Restrictive Business Practices (RBPs)

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