The Competition and Markets Authority (CMA) has published guidance to help accountants inform their clients of the importance of complying with competition law, after research suggested smaller companies in particular may be unaware of the requirements and could benefit from expert advice
The material includes a 60-second summary providing an introduction to competition law which was developed in partnership with accountancy bodies, ACCA and ICAS.
CMA says the summary highlights research which shows that three quarters (77%) of businesses do not have a good understanding of competition law and outlines the penalties for breaking the law which can include fines of up to 10% of global turnover for businesses and a maximum five-year jail term for individuals involved in cartels. Directors can also be disqualified for up to 15 years.
It also provides accountants with useful pointers on how to familiarise themselves with common competition law risks and recommends steps that any business can take to deal with such risks.
Judith Frame, CMA head of compliance, said: ‘It explains the importance of competition in creating a level playing field for businesses and outlines where accountants can find more information on anti-competitive behaviours.
‘We hope this will help accountants put competition law on their clients’ radars to help them avoid risks and to benefit from competition.’
The resources can be found on the CMA’s webpage here
ICAS and ACCA will also promote the advice and guidance to members.
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