This section applies where a recognised body proposes to make any regulatory provision in connection with—
its business as an investment exchange,
the provision by it of clearing services, or
the provision by it of services falling within section 285(2)(b) or (3)(b).
If it appears to the appropriate regulator—
that the proposed provision will impose a requirement on persons affected (directly or indirectly) by it, and
that the requirement is excessive,
the appropriate regulator may direct that the proposed provision must not be made.
A requirement is excessive if—
it is not required under ... any enactment or rule of law in the United Kingdom, and
either—
it is not justified as pursuing a reasonable regulatory objective, or
it is disproportionate to the end to be achieved.
In considering whether a requirement is excessive the appropriate regulator must have regard to all the relevant circumstances, including—
the effect of existing legal and other requirements,
the global character of financial services and markets and the international mobility of activity,
the desirability of facilitating innovation, and
the impact of the proposed provision on market confidence.
In this section "requirement" includes any obligation or burden.
Any provision made in contravention of a direction under this section is of no effect.