553.This section sets out the Treasury’s powers to take action following an adverse report from the Commission on an application for a recognition order.
554.If the Commission’s report concludes that no significantly adverse effect on competition exists, or such an effect does exist, but is justified, subsection (2) requires that the Treasury must approve the making of the recognition order unless exceptional circumstances exist to justify their refusal. If, however, the Commission’s report is that a significantly adverse effect on competition exists, and is not justified, then subsection (4) requires that the Treasury, unless exceptional circumstances exist, should refuse to approve the making of the recognition order.
Commentary on Sections Part Xviii: Recognised Investment Exchanges and Clearing Houses Chapter II: Competition Scrutiny Section 307: Recognition orders: role of the Treasury