555.This section concerns the Treasury’s powers to take action following an adverse report from the Commission, other than a report on an application for a recognition order.
556.If the Commission’s report is that the anti-competitive effect is not justified, subsection (2) requires that the Treasury give a “remedial direction”.  (A remedial direction is defined in subsection (8) as a direction to the Authority to either revoke the recognition of the body concerned, or to direct the body to take specified steps as set out in the direction.)  However, subsection (3) provides that the Treasury need not give a direction either where the Treasury consider that it is not necessary as a result of action which has already been taken by the body concerned or by the Authority, or because exceptional circumstances exist which makes it inappropriate or unnecessary to give a direction. Conversely, if the Commission's conclusion is that the anti-competitive effect is justified, under subsections (5) and (6) the Treasury may nonetheless give a direction to the Authority to take action which the Treasury consider necessary because of exceptional circumstances of the case.
Commentary on Sections Part Xviii: Recognised Investment Exchanges and Clearing Houses Chapter II: Competition Scrutiny Section 308: Directions by the Treasury