The Finance and Regulation Group

Membership and attendance

1. Membership of the Finance and Regulation Group (FRG) consists of:

• A Chair of FRG;
• A Deputy Chair of FRG; and
• At least two other Competition Commission (CC) members.

2. The following staff will also normally attend:

• The Director of Financial and Business Analysis; and
• A member of the Financial and Business Advisory Team will act as Group secretary.

3. The Chief Executive may attend FRG meetings as appropriate, as may the Chief Economist, Chief Legal Adviser, Senior Inquiry Director, and Chief Business Adviser, or any staff they nominate.

4. Additionally:

• Any other member of staff, CC member and external adviser who is invited may attend a meeting as required to provide advice, guidance and support; and
• Any Deputy Chairman or member of the Senior Team may request to be invited to any meeting by notifying the secretary beforehand.

5. Responsibility for the operational support for FRG lies with the CC's Director of Financial and Business Analysis.

Appointments

6. Members of FRG are appointed by the CC’s Chairman. The Chairman will designate one of the members of FRG as its Chair and one as the Deputy Chair. The Chair and the Deputy Chair of FRG must be CC members.

7. Appointments last for three years.

Reporting

8. The activities of FRG are reported to Council through the Chief Executive’s report or, where necessary, through other ad hoc reports.

Meetings

9. FRG will meet approximately every two months unless otherwise agreed.

FRG’s responsibilities

10. FRG oversees the CC’s role in analysing issues in references relating to regulated sectors under the relevant regulatory statutes, and ensures that the CC’s expertise and guidance is appropriately developed and applied FRG does so by:

a) Providing advice to reference groups where requested on issues concerning the cost of capital and financeability;
b) Evaluating inquiry outcomes: FRG reviews appropriate learning points on analysis in regulatory inquiries, including appropriate points highlighted at relevant end of inquiry review meetings;
c) Developing guidance: FRG oversees the development of guidance on the CC’s approach to analysing topics relating to regulated sectors.

11. FRG may also provide advice on cost of capital and financeability where relevant in the context of a market investigation reference.

Procedures

12. Subject to paragraphs 12 and 13 below FRG may determine its own procedures.

13. The operational procedures for FRG will be as follows:

• • In the event that the designated Chair is not present to Chair a meeting, the Deputy Chair is the Chair. If the Deputy Chair is not present, the longest–serving member of the CC who is a member of FRG is the Chair;
• A forward programme of scheduled meetings will be established which may be supplemented as necessary with meetings convened at shorter notice;
• Unless otherwise agreed by the Chair in the specific circumstances of a proposed meeting, at least five clear working days’ notice of a meeting shall be given to each member;
• An agenda and papers shall be circulated by the secretary to the members and staff attendees of FRG and the Senior Team prior to each meeting;
• Decisions of FRG shall be taken by simple majority of the members, each of those who are entitled to vote having one vote. Only members present or deemed to be present may vote;
• In the case of equality of votes, the Chair has the casting vote;
• Members may attend meetings by using a telephone or video conferencing facility. Members so attending shall be deemed to be present;
• At each meeting the Director of Financial and Business Analysis will report back on activity in the areas over which FRG has oversight, listed in paragraph 10;
• Minutes of meetings shall be prepared by the secretary and considered for approval at the following meeting of FRG. Approval of the minutes is not required prior to the taking of any action authorised to be taken at the meeting to which the minutes relate;
• Agendas and minutes will be made available via Landscape;
• A registered file copy of all reports, agendas and minutes will be retained in the CC’s Electronic Document and Records Management (EDRM) system;
• The quorum for meetings will be 3 members;
• Where a reference raises issues upon which a reference group consults FRG, the Chair may appoint a sub-group of FRG to deliberate on particular issues and provide advice to the reference group.

Conflicts of interest

14. Members of FRG will:

• have regard to the policy of the CC on conflicts of interest, which can be found in the guidance on outside interests (CC Guidance on outside interests) on the CC website;
• review before each meeting whether there are any interests which may conflict with their duties as members of FRG and if so disclose them to the secretary of FRG and, where appropriate, the CC planning team;
• be asked by the Chair of FRG at each meeting to confirm they have carried out such a review and made such disclosure;
• not participate in any activity of FRG in relation to which they believe they have a conflict or possible conflict of interest without the consent of the Chair of FRG.

September 2011

Current members of the FRG