'NOT FAIR'

Published: Wednesday October 22, 2008

BARBADOS' top regulatory agency has rapped a practice by commercial banks of keeping a "selected list" of valuers for clients seeking to obtain property loans.

Such a practice would likely lead to a "distortion of competition" in the market for the supply of property valuation services, says the Fair Trading Commission (FTC), a body set up by Government in January 2001 with an expanded mandate to monitor fair competition and consumers' rights – on top of utilities regulation.

The FTC is to discuss the preliminary findings of its own investigation into the matter of selective lists with representatives of the Bankers' Association, the Association of Valuers and other interested stakeholders tomorrow from 10 a.m. at Sherbourne Conference Centre.

Following the probe the FTC developed a set of recommendations that would inform the process of selecting valuers to "make it more consistent with the requirements of the Fair Competition Act".

"The Bankers' Association, acting on behalf of the commercial banks," reports FTC chief executive officer, Peggy Griffith, "has accepted these recommendations and has proposed criteria to govern the standards to be met by valuers who peform valuations for clients seeking to obtain property loans from commercial banks.

"This meeting will fully discuss the proposed criteria and agree [on] the way forward on this matter."

Unfair or anti-competitve conduct by businesses is covered by Section 13 (2) of the Fair Competition Act, which prevents agreements between businesses that have or are likely to have the effect of preventing, restricting or distorting competition in a market.

Among other things, the law prohibits agreements that provide for the artificial "divvying" up of markets or sources of supply.


Source: Nation Newspapers
http://www.nationnews.com/story/356821803034455.php