Investment Exchanges and Clearing Houses Act 2006
| Year | 2006 |
Investment Exchanges and Clearing Houses Act 2006
2006 Chapter 55
An Act to confer power on the Financial Services Authority to disallow excessive regulatory provision by recognised investment exchanges and clearing houses; and for connected purposes.
[19th December 2006]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
1 Power of FSA to disallow excessive regulatory provision
In Part 18 of the Financial Services and Markets Act 2000 (c. 8)(recognised investment exchanges and clearing houses), after section 300 insert—
‘Power to disallow excessive regulatory provision
300A Power of Authority to disallow excessive regulatory provision
(1) This section applies where a recognised body proposes to make any regulatory provision in connection with its business as an investment exchange or the provision by it of clearing services.
(a) that the proposed provision will impose a requirement on persons affected (directly or indirectly) by it, and
(b) that the requirement is excessive,
the Authority may direct that the proposed provision must not be made.
(a) it is not required under Community law or any enactment or rule of law in the United Kingdom, and
(i) it is not justified as pursuing a reasonable regulatory objective, or
(ii) it is disproportionate to the end to be achieved.
(a) the effect of existing legal and other requirements,
(b) the global character of financial services and markets and the international mobility of activity,
(c) the desirability of facilitating innovation, and
(d) the impact of the proposed provision on market confidence.
(5) In this section "requirement" includes any obligation or burden.
(6) Any provision made in contravention of a direction under this section is of no effect.
2 Procedural and other supplementary provisions
In Part 18 of the Financial Services and Markets Act 2000 (c. 8)(recognised investment exchanges and clearing houses), after the section inserted by section 1 above insert—
300B ‘Duty to notify proposal to make regulatory provision
(1) A recognised body that proposes to make any regulatory provision must give written notice of the proposal to the Authority without delay.
(a) specify descriptions of regulatory provision in relation to which, or circumstances in which, the duty in subsection (1) above does not apply, or
(b) provide that the duty applies only to specified descriptions of regulatory provision or in specified circumstances.
(a) make provision as to the form and contents of the notice required, and
(b) require the body to provide such information relating to the proposal as may be specified in the rules or as the Authority may reasonably require.
300C Restriction on making provision before Authority decides whether to act
(a) before that notice is given, or
(b) subject to the following provisions of this section, before the end of the initial period.
(a) the period of 30 days beginning with the day on which the Authority receives notice of the proposal, or
(b) if any consultation period announced by the body in relation to the proposal ends after...
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