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COMP 5.5 Protected investment business

COMP 5.5.1R

Protected investment business is:

  1. (1)

    designated investment business carried on by the relevant person with, or for the benefit of, the claimant (so long as that claimant has a claim), or as agent on the claimant's behalf;2

  2. (2)

    the activities of the manager or trustee of an AUT, provided that the claim is made by a holder;

  3. (3)

    the activities of the ACD or depositary of an ICVC, provided that the claim is made by a holder;

  4. (4)

    the activities of the authorised contractual scheme manager or depositary of an ACS, provided that the claim is made by a holder;6

  5. (5)

    the activities of the manager or depositary of an ELTIF, provided that the claim is made by a holder; 9

  6. (5A)

    the activities by a recognised investment exchange of operating a multilateral trading facility or operating an organised trading facility,12

  7. (6)

    10the intermediation of structured deposits,

provided that the territorial scope condition in COMP 5.5.2 R is satisfied and, for a firm acting as the manager or depositary of a fund, one of the conditions in COMP 5.5.3 R is satisfied.7


Territorial scope condition

COMP 5.5.2R

The territorial scope condition is that7 the protected investment business was carried on from:

  1. (1)

    an establishment of the relevant person in the United Kingdom; or

  2. (2)

    a branch of a UK firm which is:

    1. (a)

      a MiFID investment firm established in another EEA State; or

    2. (b)

      a UCITS management company established in another EEA State (but only in relation to managing investments (other than advising on investments or safeguarding and administering investments);

  3. and the claim is an ICD claim; or

  4. (3)

    both (1) and (2); or5

  5. (4)
    1. (a)

      5a UK branch of an EEA UCITS management company; or

    2. (b)

      an establishment of such an EEA UCITS management company in its Home State from which cross border services are being carried on;

    and in either case the management company is providing collective portfolio management services for a UCITS scheme but only if the claim relates to that activity; or7

  6. (5)

    an establishment of an incoming EEA AIFM in another EEA State if the claim relates to providing AIFM management functions on a cross border services basis for an authorised AIF.7

Managers and depositaries of funds

COMP 5.5.3R

7The conditions referred to in COMP 5.5.1 R for a manager or depositary of a fund are:

  1. (1)

    for the activities of managing an AIF, managing a UCITS10 or establishing, operating or winding up a collective investment scheme, the claim is in respect of an investment in:

    1. (a)

      an authorised fund; or

    2. (b)

      any other fund which has its registered office or head office in the UK or is otherwise domiciled in the UK unless it is an AIF that is a body corporate and not a collective investment scheme9;

  2. (2)

    where a firm is acting as depositary of a fund10, the claim is in respect of their activities for:9

    1. (a)

      an authorised fund10; or

    2. (b)

      a charity AIF unless it is a body corporate that is not a collective investment scheme9.


Advising without a personal recommendation

COMP 5.5.4R

11The FSCS must treat a claim relating to advice in relation to a designated investment that falls outside article 53(1) of the Regulated Activities Order by virtue of article 53(1A) of that Order as being ‘in connection with protected investment business’ for the purposes of COMP 5.2.1R(3) where the relevant person giving the advice, at the time the act or omission giving rise to the claim took place:

  1. (1)

    had, or required, permission to carry on; or

  2. (2)

    (in the case of an appointed representative) was exempt from the general prohibition in respect of,

an activity that was designated investment business.