Unsuccessful judicial review: London Metal Exchange disciplinary action R v The London Metal Exchange Limited ex parte Albatros Warehousing BV
| Pages | 171-180 |
| Date | 01 February 2001 |
| DOI | https://doi.org/10.1108/eb025072 |
| Published date | 01 February 2001 |
| Author | Joanna Gray |
| Subject Matter | Accounting & finance |
Regulatory and legal commentary
Unsuccessful judicial review: London Metal
Exchange disciplinary action
R v The London Metal Exchange Limited ex
parte Albatros Warehousing BV
High Court, Queens Bench Division: The Hon Mr Justice Richards
Date of Judgment: 30th March, 2000
Joanna Gray
Solicitor; e-mail: joanna@alwinton.fsnet.co.uk
Journal of Financial Regulation and Compliance Volume 9 Number 2
FACTS
The London Metal Exchange is a recog-
nised investment exchange under s. 36
Financial Services Act 1986 and is thus
exempt from any need to secure authorisa-
tion under that Act. Schedule 4 of the
Financial Services Act 1986 sets out the cri-
teria which an investment exchange must
meet and fulfil on a continuing basis in
order to procure recognition from HM
Treasury. Included in the Sch. 4 criteria
are:
Safeguards for investors:
2.(1) The rules and practices of the
exchange must ensure that busi-
ness conducted by means of its
facilities is conducted in an
orderly manner and so as to afford
proper protection to investors.
2.(2) The exchange must (a) limit deal-
ings on the exchange to invest-
ments in which there is a proper
market; and (b) where relevant,
require issuers of investments dealt
in on the exchange to comply
with such obligations as will, so
far as possible, afford to persons
dealing in the investments proper
information for determining their
current value....
Investigation of complaints:
4.
The exchange must have effective
arrangements for the investigation
of complaints in respect of business
transacted by means of its facilities.
Promotion and maintenance of stan-
dards:
5.
The exchange must be able and
willing to promote and maintain
high standards of integrity and fair
dealing in the carrying on of invest-
ment business....
Supplementary
6.(1) The provisions of this Schedule
relate to an exchange only so far as
it provides facilities for the
carrying on of investment business;
Journal of Financial Regulation
and Compliance, Vol. 9, No. 2,
2001,
pp. 171-180
Henry Stewart Publications,
1358-1988
Page 171
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