Market Watch looks at using ECCTA to share information

The latest edition of the FCA’s Market Watch looks at how firms can use ECCTA to share customer information to help fight economic crime. The ECCTA provisions apply to all firms subject to the MLRs, and covers a variety of offences, including in this context the offences of misleading statements and impressions in sections 89-91 Financial Services Act 2012 (although it does not apply to insider dealing or market abuse – but the Home Office is consulting on whether it should).

The FCA explains how firms can share information under ECCTA is the “warning” or “request” conditions apply and encourages them to consider how the measures apply to their business and when it would be appropriate to share information. It plans to start asking firms whether and how they are using ECCTA to share information and whether they are facing any barriers.

It also reminds firms of the protections ECCTA gives them while reminding them they must still comply with data protection legislation and, where appropriate, make SARs or STORs.