Financial Services and Markets Bill - continued        House of Lords
PART XVIII, RECOGNISED INVESTMENT EXCHANGES AND CLEARING HOUSES - continued

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  CHAPTER III
  EXCLUSION FROM OTHER UK COMPETITION LAW
 
The Fair Trading Act 1973
Monopoly situations etc.     306. - (1) For the purpose of determining whether a monopoly situation within the meaning of the Fair Trading Act 1973 ("the 1973 Act") exists by reason of the circumstances mentioned in section 7(1)(c) of that Act, no account is to be taken of-
 
 
    (a) the regulatory provisions of a recognised body or any conduct required or contemplated by any such provisions;
 
    (b) any practices of a recognised body; or
 
    (c) any trading practices.
      (2) If a recognition order is revoked, any such conduct or practice as is referred to in subsection (1) which occurred while the order was in force is to be disregarded for the purpose mentioned in subsection (1).
 
      (3) Subsection (4) applies where, on a monopoly reference under section 50 or 51 of the 1973 Act which falls within section 49 of that Act, the Competition Commission finds that a monopoly situation within the meaning of that Act exists and-
 
 
    (a) that the person (or, if more than one, any of the persons) in whose favour it exists is subject to the rules of a recognised body;
 
    (b) that any such person's conduct in carrying on a business to which those rules relate is the subject of guidance issued by a recognised body;
 
    (c) that any such person is a party to any clearing arrangements; or
 
    (d) that the person (or, if more than one, any of the persons) in whose favour the monopoly situation exists is a recognised body.
      (4) The Commission, in making its report on the reference, must exclude from its consideration the question whether the regulatory provisions or any acts or omissions of a recognised body in its capacity as such operate, or may be expected to operate, against the public interest.
 
      (5) Section 54(3) of the 1973 Act has effect subject to subsection (4).
 
 
The Competition Act 1998 (c.41.)
The Chapter I prohibition.     307. - (1) The Chapter I prohibition does not apply to an agreement for the constitution of a recognised body to the extent to which the agreement relates to the regulatory provisions of that body.
 
      (2) If the conditions set out in subsection (3) are satisfied, the Chapter I prohibition does not apply to an agreement for the constitution of-
 
 
    (a) an investment exchange which is not a recognised investment exchange, or
 
    (b) a clearing house which is not a recognised clearing house,

to the extent to which the agreement relates to the regulatory provisions of that body.

      (3) The conditions are that-
 
 
    (a) the body has applied for a recognition order in accordance with the provisions of this Act; and
 
    (b) the application has not been determined.
      (4) The Chapter I prohibition does not apply to a recognised body's regulatory provisions.
 
      (5) The Chapter I prohibition does not apply to a decision made by a recognised body to the extent to which the decision relates to-
 
 
    (a) any of that body's regulatory provisions or practices; or
 
    (b) any trading practices.
      (6) The Chapter I prohibition does not apply to-
 
 
    (a) practices of a recognised body; or
 
    (b) trading practices.
      (7) The Chapter I prohibition does not apply to an agreement the parties to which consist of or include-
 
 
    (a) a recognised body, or
 
    (b) a person who is subject to the rules of a recognised body,

to the extent to which the agreement consists of provisions the inclusion of which is required or contemplated by any of the body's regulatory provisions or practices or the trading practices of a person who is subject to the rules of a recognised body.

      (8) If a recognised body's recognition order is revoked, this section is to have effect as if that body had continued to be recognised until the end of the period of six months beginning with the day on which the revocation took effect.
 
      (9) "The Chapter I prohibition" means the prohibition imposed by section 2(1) of the Competition Act 1998.
 
      (10) Expressions used in this section which are also used in Part I of the Competition Act 1998 are to be interpreted in the same way as for the purposes of that Part of that Act.
 
The Chapter II prohibition.     308. - (1) The Chapter II prohibition does not apply to-
 
 
    (a) practices of a recognised body;
 
    (b) trading practices;
 
    (c) the adoption or enforcement of such a body's regulatory provisions;
 
    (d) any conduct which is engaged in by such a body or by a person who is subject to the rules of such a body to the extent to which it is contemplated or required by the regulatory provisions of the body.
      (2) The Chapter II prohibition means the prohibition imposed by section 18(1) of the Competition Act 1998.
 
 
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