Paragraph 14

Section 119 of the Financial Services Act 1986 (competition scrutiny: recognition orders) is amended as follows.

In subsection (1) (considerations relevant to making of recognition order), for paragraphs (a) and (b) substitute—

“(a)

in the case of a self-regulating organisation, the rules and any guidance of which copies are furnished with the application for the order, together with any statements of principle, rules, regulations or codes of practice to which members of the organisation would be subject by virtue of Chapter V of this Part,

(b)

in the case of an investment exchange, the rules and any guidance of which copies are furnished with the application for the order, together with any arrangements of which particulars are furnished with the application,

(c)

in the case of a clearing house, the rules and any guidance of which copies are furnished with the application for the order,”.

In subsection (2) (circumstances in which powers are exercisable in relation to recognised body), for paragraphs (a) to (c) substitute—

“(a)

in the case of a self-regulating organisation—

(i)

any rules made or guidance issued by the organisation,

(ii)

any practices of the organisation, or

(iii)

any practices of persons who are members of, or otherwise subject to the rules made by, the organisation,

together with any statements of principle, rules, regulations or codes of practice to which members of the organisation are subject by virtue of Chapter V of this Part,

(b)

in the case of a recognised investment exchange—

(i)

any rules made or guidance issued by the exchange,

(ii)

any practices of the exchange, or

(iii)

any practices of persons who are members of, or otherwise subject to the rules made by, the exchange,

(c)

in the case of a recognised clearing house—

(i)

any rules made or guidance issued by the clearing house,

(ii)

any practices of the clearing house, or

(iii)

any practices of persons who are members of, or otherwise subject to the rules made by, the clearing house,

or any clearing arrangements made by the clearing house,”.

In subsection (3) (powers exercisable in relation to recognised body)—

In subsection (5) (construction of references to practices)—

After that subsection insert—

“(6)

The practices referred to in paragraph (a)(iii), (b)(iii) and (c)(iii) of subsection (2) above are—

(a)

in relation to a recognised self-regulating organisation, practices in relation to business in respect of which the persons in question are subject to—

(i)

the rules of the organisation, or

(ii)

statements of principle, rules, regulations or codes of practice to which its members are subject by virtue of Chapter V of this Part,

and which are required or contemplated by the rules of the organisation or by those statements, rules, regulations or codes, or by guidance issued by the organisation,

(b)

in relation to a recognised investment exchange or clearing house, practices in relation to business in respect of which the persons in question are subject to the rules of the exchange or clearing house, and which are required or contemplated by its rules or guidance,

or which are otherwise attributable to the conduct of the organisation, exchange or clearing house as such.”.