C1C2Part I Regulation of Investment Business
Pt. I (ss. 1–128): power to modify conferred (prosp.) by Courts and Legal Services Act 1990 (c. 41, SIF 76:1), ss. 89, 124(3), Sch. 14 para. 9(c)
Chapter XIV Prevention of Restrictive Practices
Consequential exemptions from competition law
124 The Fair Trading Act 1973.
1
For the purpose of determining whether a monopoly situation within the meaning of the Fair Trading Act 1973 exists by reason of the circumstances mentioned in section 7(1)(c) of that Act, no accound shall be taken of—
a
the rules made or guidance issued by a recognised self-regulating organisation, recognised investment exchange or recognised clearing house or any conduct constituting such a practice as is mentioned in section 119(2) above;
b
any clearing arrangements or any conduct required or contemplated by any such arrangements; or
c
the F2statements of principle, rules, regulations, codes of practice or guidance issued or made by a designated agency in the exercise of functions transferred to it by a delegation order or any conduct constituting such a practice as is mentioned in section 121(2) above.
2
Where a recognition order is revoked there shall be disregarded for the purpose mentioned in subsection (1) above any such conduct as is mentioned in that subsection which occurred while the order was in force.
3
Where on a monopoly reference under section 50 or 51 of the said Act of 1973 falling within section 49 of that Act F3the Competition Commissionfind that a monopoly situation within the meaning of that Act exists and—
a
that the person (or, if more than one, any of the persons) in whose favour it exists is subject to the rules of a recognised self-regulating organisation, recognised investment exchange or recognised clearing house or to the F4statements of principle, rules, regulations or codes of practice issued or made by a designated agency in the exercise of functions transferred to it by a delegation order; or
b
that any such person’s conduct in carrying on any business to which those F4statements of principle, rules, regulations or codes of practice relate is the subject of guidance issued by such an organisation, exchange, clearing house or agency; or
c
that any such person is a party to any clearing arrangements; or
d
that the person (or, if more than one, any of the persons) in whose favour the monopoly situation exists is such an organisation, exchange or clearing house as is mentioned in paragraph (a) above or a designated agency,
the Commission, in making their report on that reference, shall exclude from their consideration the question whether the F4statements of principle, rules, regulations, codes of practice, guidance or clearing arrangements or any acts or omissions of such an organisation, exchange, clearing house or agency as is mentioned in paragraph (d) above in its capacity as such operate, or may be expected to operate, against the public interest; and section 54(3) of that Act shall have effect subject to the provisions of this subsection.
125F5 The Competition Act 1998: Chapter I prohibition.
1
The Chapter I prohibition does not apply to an agreement for the constitution of—
a
a recognised self-regulating organisation,
b
a recognised investment exchange, or
c
a recognised clearing house,
to the extent to which the agreement relates to the regulating provisions of the body concerned.
2
Subject to subsection (3) below, the Chapter I prohibition does not apply to an agreement for the constitution of—
a
a self-regulating organisation,
b
an investment exchange, or
c
a clearing house,
to the extent to which the agreement relates to the regulating provisions of the body concerned.
3
The exclusion provided by subsection (2) above applies only if—
a
the body has applied for a recognition order in accordance with the provisions of this Act; and
b
the application has not been determined.
4
The Chapter I prohibition does not apply to a decision made by—
a
a recognised self-regulating organisation,
b
a recognised investment exchange, or
c
a recognised clearing house,
to the extent to which the decision relates to any of that body’s regulating provisions or specified practices.
5
The Chapter I prohibition does not apply to the specified practices of—
a
a recognised self-regulating organisation, a recognised investment exchange or a recognised clearing house; or
b
a person who is subject to—
i
the rules of one of those bodies, or
ii
the statements of principle, rules, regulations or codes of practice made by a designated agency in the exercise of functions transferred to it by a delegation order.
6
The Chapter I prohibition does not apply to any agreement the parties to which consist of or include—
a
a recognised self-regulating organisation, a recognised investment exchange or a recognised clearing house; or
b
a person who is subject to—
i
the rules of one of those bodies, or
ii
the statements of principle, rules, regulations or codes of practice made by a designated agency in the exercise of functions transferred to it by a delegation order,
to the extent to which the agreement consists of provisions the inclusion of which is required or contemplated by any of the body’s regulating provisions or specified practices or by the statements of principle, rules, regulations or codes of practice of the agency.
7
The Chapter I prohibition does not apply to—
a
any clearing arrangements; or
b
any agreement between a recognised investment exchange and a recognised clearing house, to the extent to which the agreement consists of provisions the inclusion of which in the agreement is required or contemplated by any clearing arrangements.
8
If the recognition order in respect of a body of the kind mentioned in subsection (1)(a), (b) or (c) above is revoked, subsections (1) and (4) to (7) above are to have effect as if that body had continued to be recognised until the end of the period of six months beginning with the day on which the revocation took effect.
9
In this section—
“the Chapter I prohibition” means the prohibition imposed by section 2(1) of the Competition Act 1998;
“regulating provisions” means—
- a
in relation to a self-regulating organisation, any rules made, or guidance issued, by the organisation;
- b
in relation to an investment exchange, any rules made, or guidance issued, by the exchange;
- c
in relation to a clearing house, any rules made, or guidance issued, by the clearing house;
- a
“specified practices” means—
- a
in the case of a recognised self-regulating organisation, the practices mentioned in section 119(2)(a)(ii) and (iii) above (read with section 119(5) and (6)(a));
- b
in the case of a recognised investment exchange, the practices mentioned in section 119(2)(b)(ii) and (iii) above (read with section 119(5) and (6)(b));
- c
in the case of a recognised clearing house, the practices mentioned in section 119(2)(c)(ii) and (iii) above (read with section 119(5) and (6)(b));
- d
in the case of a person who is subject to the statements of principle, rules, regulations or codes of practice issued or made by a designated agency in the exercise of functions transferred to it by a delegation order, the practices mentioned in section 121(2)(c) above (read with section 121(4));
and expressions used in this section which are also used in Part I of the Competition Act 1998 are to be interpreted in the same way as for the purposes of that Part of that Act.
- a
F6126 The Competition Act 1980.
1
No course of conduct constituting any such practice as is mentioned in section 119(2) or 121(2) above shall constitute an anti-competitive practice for the purposes of the M1Competition Act 1980.
2
Where a recognition order or delegation order is revoked, there shall not be treated as an anti-competitive practice for the purposes of that Act any such course of conduct as is mentioned in subsection (1) above which occurred while the order was in force.
Pt. I (ss. 1-128) amended (S.) (22.5.2000) by S.I. 2000/121, regs. 1, 37, Sch. 2