Part XVIIIRecognised investment exchanges, clearing houses and CSDs

Chapter I Exemption

Power to disallow excessive regulatory provision

F1300DConsideration by F2appropriate regulator whether to disallow proposed provision

(1)

This section applies where the F3appropriate regulator notifies a recognised body that it is calling in a proposal to make regulatory provision.

(2)

The F3appropriate regulator must publish a notice—

(a)

giving details of the proposed provision,

(b)

stating that it has called in the proposal in order to consider whether to disallow it, and

(c)

specifying a period during which representations with respect to that question may be made to it.

(3)

The F3appropriate regulator may extend the period for making representations.

(4)

The F3appropriate regulator must notify the body of its decision whether to disallow the provision not later than 30 days after the end of the period for making representations, and must publish the decision and the reasons for it.

(5)

The body must not make the provision unless and until—

(a)

the F4appropriate regulator notifies it of its decision not to disallow it, or

(b)

the 30-day period specified in subsection (4) ends without the F5appropriate regulator having notified any decision.

(6)

If F6the appropriate regulator notifies the body of its decision to disallow the provision and that decision is questioned in legal proceedings—

(a)

the body must not make the provision until those proceedings, and any proceedings on appeal, are finally determined,

(b)

if F7the appropriate regulator's decision is quashed and the matter is remitted to it for reconsideration, the court may give directions as to the period within which F8the regulator concerned is to complete its reconsideration, and

(c)

the body must not make the provision until—

(i)

F9the appropriate regulator notifies it of its decision on reconsideration not to disallow the provision, or

(ii)

the period specified by the court ends without F10the appropriate regulator having notified any decision.

(7)

Any provision made in contravention of subsection (5) or (6) is of no effect.