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

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Directions by the Treasury.     302. - (1) This section applies if the Competition Commission makes a report under section 300(4) (other than a report on an application for a recognition order) which states the Commission's conclusion that there is a significantly adverse effect on competition.
 
      (2) If the Commission's conclusion, as stated in the report, is that the adverse effect on competition is not justified, the Treasury must give a remedial direction to the Authority.
 
      (3) But subsection (2) does not apply if the Treasury consider-
 
 
    (a) that, as a result of action taken by the Authority or the recognised body concerned in response to the Commission's report, it is unnecessary for them to give a direction; or
 
    (b) that the exceptional circumstances of the case make it inappropriate or unnecessary for them to do so.
      (4) In considering the action to be specified in a remedial direction, the Treasury must have regard to any conclusion of the Commission included in the report because of section 300(7)(b).
 
      (5) Subsection (6) applies if-
 
 
    (a) the Commission's conclusion, as stated in its report, is that the adverse effect on competition is justified; but
 
    (b) the Treasury consider that the exceptional circumstances of the case require them to act.
      (6) The Treasury may give a direction to the Authority requiring it to take such action-
 
 
    (a) as they consider to be necessary in the light of the exceptional circumstances of the case; and
 
    (b) as may be specified in the direction.
      (7) If the action specified in a remedial direction is the giving by the Authority of a direction-
 
 
    (a) the direction to be given must be compatible with the recognition requirements applicable to the recognised body in relation to which it is given; and
 
    (b) subsections (3) and (4) of section 291 apply to it as if it were a direction given under that section.
      (8) "Remedial direction" means a direction requiring the Authority-
 
 
    (a) to revoke the recognition order for the body concerned; or
 
    (b) to give such directions to the body concerned as may be specified in it.
Statements by the Treasury.     303. - (1) If, in reliance on subsection (3)(a) or (b) of section 302, the Treasury decline to act under subsection (2) of that section, they must make a statement to that effect, giving their reasons.
 
      (2) If the Treasury give a direction under section 302 they must make a statement giving-
 
 
    (a) details of the direction; and
 
    (b) if the direction is given under subsection (6) of that section, their reasons for giving it.
      (3) The Treasury must-
 
 
    (a) publish any statement made under this section in the way appearing to them best calculated to bring it to the attention of the public; and
 
    (b) lay a copy of it before Parliament.
Procedure on exercise of certain powers by Treasury.     304. - (1) Subsection (2) applies if the Treasury are considering-
 
 
    (a) whether to refuse their approval under section 301;
 
    (b) whether section 302(2) applies; or
 
    (c) whether to give a direction under section 302(6).
      (2) The Treasury must-
 
 
    (a) take such steps as they consider appropriate to allow the exchange or clearing house concerned, and any other person appearing to the Treasury to be affected, an opportunity to make representations-
 
      (i) about any report made by the Director under section 297 or 298 or by the Competition Commission under section 300;
 
      (ii) as to whether, and if so how, the Treasury should exercise their powers under section 301 or 302; and
 
    (b) have regard to any such representations.
 
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