528.This section gives recognised investment exchanges immunity against legal action for damages in respect of anything done or omitted in the discharge of the recognised body’s regulatory functions.  This immunity does not apply where the act or omission was in bad faith or where it was unlawful as a result of section 6(1) of the Human Rights Act 1998.  Under section 6(1) of that Act, it is unlawful for a public authority to act in a way which is incompatible with a right conferred by the European Convention on Human Rights and Fundamental Freedoms which is included in Schedule 1 to the 1998 Act.
Commentary on Sections Part Xviii: Recognised Investment Exchanges and Clearing Houses Chapter I: Exemption Section 291: Liability in relation to recognised body’s regulatory functions