Part 4Regulation of approved regulators
Competition
57Reports by the F3CMA
1
2
A report under subsection (1)—
a
must state what, in the F10CMA's opinion, is the effect, or likely effect, on competition of the regulatory arrangements or part of them to which the report relates, and
b
may contain recommendations as to the action which the Board should take for the purpose of ensuring that the regulatory arrangements of the approved regulator do not prevent, restrict or distort competition.
3
Where the F13CMA makes a report under subsection (1), it must—
a
give a copy of the report to the Board, the Consumer Panel and the approved regulator, and
b
publish the report.
4
Before publishing a report under subsection (3)(b), the F13CMA 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 F13CMA, would or might seriously and prejudicially affect the interests of that individual.
5
The F13CMA may exercise any of the powers conferred on it by section 174(3) to (5) F11and (6A) of the Enterprise Act 2002 (c. 40) (investigation powers) for the purpose of assisting it in exercising its functions under this section F12and references in section 174 of the Enterprise Act 2002 to a “permitted purpose” are to be construed accordingly.
F85A
Where the CMA exercises any of its powers under section 174 of the Enterprise Act 2002 for the purpose referred to in subsection (5), “the relevant day” for the purposes of section 174B of the Enterprise Act 2002 is the day on which the CMA publishes its report.
6
For the purposes of the law of defamation, absolute privilege attaches to any report of the F13CMA under this section.
58The Board's response to F2CMA report
1
This section applies where a report is made by the F14 CMA under section 57 in respect of an approved regulator.
2
The Board must allow the approved regulator a period of 28 days beginning with the day on which the copy of the report is given to the approved regulator under section 57, or such longer period as the Board may specify in a particular case, to make representations to the Board about the F15CMA's report.
3
The Consumer Panel may give the Board such advice as the Consumer Panel thinks fit regarding the F15CMA's report.
4
Having considered any representations made under subsection (2) and any advice given under subsection (3), the Board must notify the F16CMA of the action (if any) it proposes to take in response to the report.
59Referral of report by the Lord Chancellor F7...
1
2
The F6CMAmay give a copy of its report to the Lord Chancellor.
3
The F6CMAmust notify the Board and the approved regulator if it gives a copy of its report to the Lord Chancellor.
4
On receiving a report under subsection (2), the Lord Chancellor F5must make a reference to the chair of the CMA for the constitution of a group under Schedule 4 to the Enterprise and Regulatory Reform Act 2013, for the purpose of advising the Lord Chancellor on what action (if any) should be taken by the Lord Chancellor under section 61.
F45
Where a reference is made to the chair of the CMA under this section for the constitution of a group, the functions of the CMA under section 60, in relation to the matter concerned, are to be carried out on behalf of the CMA by the group so constituted (including functions under sections 109 to 115 of the Enterprise Act 2002, as applied by section 60(9)).
60Duties of the F1CMA
1
Where the Lord Chancellor F19makes a reference under section 59, the CMA under section 59, the Commission must investigate the matter.
2
F20The CMA must then make a report on the matter unless it considers that, as a result of any change of circumstances, no useful purpose would be served by a report.
3
If the F21CMA decides in accordance with subsection (2) not to make a report, it must make a statement setting out the change of circumstances which resulted in that decision.
4
5
A report made under this section must state the F24CMA's conclusion as to whether any of the matters which is the subject of the report has or is likely to have the effect of preventing, restricting or distorting competition within the market for reserved legal services to a significant extent.
6
A report under this section stating the F25CMA's conclusion that there is, or is likely to be, such an effect must also—
a
state whether or not the F26CMA considers that that effect is justified, and
b
if it states that the F26CMA considers that it is not justified, state its conclusion as to what action, if any, ought to be taken by the Board.
7
When determining under subsection (6)(b) any action to be taken by the Board, the F27CMA must ensure—
a
that the action stated is action which the Board has power to take, and
b
so far as reasonably possible, that the action stated is compatible with the functions conferred, and obligations imposed, on the Board by or under this Act.
8
9
Sections F18109 to 110A and 111 to 115 of the Enterprise Act 2002 (c. 40) (investigation powers) apply in relation to an investigation under this section as they apply in relation to an investigation made on a reference made F17to the CMA under Part 3 of that Act (mergers), but as if—
F32a
references in section 109 of that Act (attendance of witnesses and production of documents etc ) to a permitted purpose were references to the purpose of assisting the CMA in carrying out any of its functions in connection with an investigation under this section, and
b
the relevant day in any case for the purposes of section 110A of that Act (restriction on powers to impose penalties under section 110) were the day on which the CMA makes a report under subsection (2) or a statement under subsection (3) in connection with that case.
10
If the F30CMA makes a report or a statement under this section it must—
a
give a copy to the Lord Chancellor, the Board, the Consumer Panel and the approved regulator to which the F31report made by the CMA under section 57 relates, and
b
publish the report or statement.
61Lord Chancellor's power to give directions
1
The Lord Chancellor may direct the Board to take such action as the Lord Chancellor considers appropriate in connection with any matter raised in a report made by the F33 CMA under section 57.
2
Before giving a direction under subsection (1), the Lord Chancellor must consider any report from the F34CMA under section 60 on that matter.
3
When exercising the power to give a direction under subsection (1), the Lord Chancellor must ensure—
a
that the action stated is action which the Board has power to take, and
b
so far as reasonably possible, that the action stated in any direction is compatible with the functions conferred, and obligations imposed, on the Board by or under this Act.
4
The Lord Chancellor must publish a direction given under this section.