Part XVIII Recognised Investment Exchanges and Clearing Houses

Chapter II Competition Scrutiny

Role of F1Office of Fair Trading

303 Initial report by F2OFT.

(1)

The Authority must send to the Treasury and to the F3OFT a copy of any regulatory provisions with which it is provided on an application for recognition under section 287 or 288.

(2)

The Authority must send to the F4OFT such information in its possession as a result of the application for recognition as it considers will assist F5the OFT in discharging F6its functions in connection with the application.

(3)

The F7OFT must issue a report as to whether—

(a)

a regulatory provision of which a copy has been sent to F8it under subsection (1) has a significantly adverse effect on competition; or

(b)

a combination of regulatory provisions so copied to F8it have such an effect.

(4)

If the F9OFT’s conclusion is that one or more provisions have a significantly adverse effect on competition, F10it must state F11its reasons for that conclusion.

(5)

When the F12OFT issues a report under subsection (3), F13the OFT must send a copy of it to the Authority, the Competition Commission and the Treasury.

304 Further reports by F14OFT.

(1)

The F14OFT must keep under review the regulatory provisions and practices of recognised bodies.

(2)

If at any time the F14OFT considers that—

(a)

a regulatory provision or practice has a significantly adverse effect on competition, or

(b)

regulatory provisions or practices, or a combination of regulating provisions and practices have such an effect,

F15the OFT must make a report.

(3)

If at any time the F14OFT considers that—

(a)

a regulatory provision or practice does not have a significantly adverse effect on competition, or

(b)

regulatory provisions or practices, or a combination of regulatory provisions and practices do not have any such effect,

F15the OFT may make a report to that effect.

(4)

A report under subsection (2) must contain details of the adverse effect on competition.

(5)

If the F14OFT makes a report under subsection (2), F15the OFT must—

(a)

send a copy of it to the Treasury, to the Competition Commission and to the Authority; and

(b)

publish it in the way appearing to F16the OFT to be best calculated to bring it to the attention of the public.

(6)

If the F14OFT makes a report under subsection (3)—

(a)

F15the OFT must send a copy of it to the Treasury, to the Competition Commission and to the Authority; and

(b)

F15the OFT may publish it.

(7)

Before publishing a report under this section, the F14OFT must, so far as practicable, exclude any matter which relates to the private affairs of a particular individual the publication of which, in the opinion of the F14OFT, would or might seriously and prejudicially affect his interests.

(8)

Before publishing such a report, the F14OFT must exclude any matter which relates to the affairs of a particular body the publication of which, in the opinion of the F14OFT, would or might seriously and prejudicially affect its interests.

(9)

Subsections (7) and (8) do not apply to the copy of a report which the F14OFT is required to send to the Treasury, the Competition Commission and the Authority under subsection (5)(a) or (6)(a).

(10)

For the purposes of the law of defamation, absolute privilege attaches to any report of the F14OFT under this section.

305 Investigations by F17OFT.

(1)

For the purpose of investigating any matter with a view to its consideration under section 303 or 304, the F17OFT may exercise the powers conferred on F18it by this section.

(2)

The F17OFT may by notice in writing require any person to produce to F18it or to a person appointed by F18it for the purpose, at a time and place specified in the notice, any document which—

(a)

is specified or described in the notice; and

(b)

is a document in that person’s custody or under his control.

(3)

The F17OFT may by notice in writing—

(a)

require any person carrying on any business to provide F18it with such information as may be specified or described in the notice; and

(b)

specify the time within which, and the manner and form in which, any such information is to be provided.

(4)

A requirement may be imposed under subsection (2) or (3)(a) only in respect of documents or information which relate to any matter relevant to the investigation.

(5)

If a person (“the defaulter”) refuses, or otherwise fails, to comply with a notice under this section, the F17OFT may certify that fact in writing to the court and the court may enquire into the case.

(6)

If, after hearing any witness who may be produced against or on behalf of the defaulter and any statement which may be offered in defence, the court is satisfied that the defaulter did not have a reasonable excuse for refusing or otherwise failing to comply with the notice, the court may deal with the defaulter as if he were in contempt.

(7)

In this section, “the court” means—

(a)

the High Court; or

(b)

in Scotland, the Court of Session.