Part XVIII Recognised Investment Exchanges and Clearing Houses
Chapter I Exemption
F1Power to disallow excessive regulatory provision
300APower 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.
2
If it appears to the Authority—
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.
3
A requirement is excessive if—
a
it is not required under Community law or any enactment or rule of law in the United Kingdom, and
b
either—
i
it is not justified as pursuing a reasonable regulatory objective, or
ii
it is disproportionate to the end to be achieved.
4
In considering whether a requirement is excessive the Authority must have regard to all the relevant circumstances, including—
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.
S. 300A and cross-heading inserted (20.12.2006) by Investment Exchanges and Clearing Houses Act 2006 (c. 55), ss. 1, 5(2) (with s. 5(3))