Content Options

View Options

Status: You are viewing the version of the handbook as on 2009-03-31.

SUP App 1.8 Notes to Figures 1 and 2

SUP App 1.8.1G

Note 1

Chapter of IPRU(INV) that requirement on permission requires the firm to comply with

Firm's prudential category

Chapter 3

Securities and futures firm

Chapter 5

Investment management firm1

Chapter 13

Personal investment firm

SUP App 1.8.2G

Note 2

The table below shows how a firm's main regulated activities determine its prudential category. A firm's'main regulated activities' in this context are the regulated activities included in the firm'sPart IV permission from which the firm derives or is expected to derive the most substantial part of its gross income, including commissions. The aggregate gross income from all of the activities listed against each prudential category should be considered to determine which source is the most substantial.

The gross income is based on the business plan submitted as part of the firm's application for a Part IV permission (for a firm given a Part IV permission after commencement) or on the firm's financial year preceding its authorisation under the Act (for a firmauthorised under section 25 of the Financial Services Act 1986 prior to commencement).

If the firm's prudential categorisation is not clear, please consult the FSA for guidance.

Activities from which the most substantial part of the firm's gross income, including commissions, from regulated activitiesis derived

Firm's prudential category

(i) Managing investments other than for retail clients2 or if the assets managed are primarily derivatives;

(ii) OPS activity;

(iii) acting as the manager or trustee of an AUT;

(iv) acting as the ACD or depository of an ICVC;

(v) establishing, operating or winding up a collective investment scheme 2other than an AUT or ICVC;

(va) establishing, operating or winding up a personal pension scheme; and2

(vi) safeguarding and administering investments.

222

Investment management firm

(i) Advising on investments, or arranging (bringing about) deals in investments, in relation to packaged products; and

(ii) managing investments for private customers.

Personal investment firm

(i) An activity carried on as a member of an exchange;

(ii) making a market in securities or derivatives;

(iii) corporate finance business;

(iv) dealing, or arranging (bringing about) deals in investments, in securities or derivatives;

(v) the provision of clearing services as a clearing firm;

(vi) managing investments where the assets managed are primarily derivatives; and

(vi) activities relating to spread bets;

Securities and futures firm

SUP App 1.8.3G

Note 3

Single SRO membership

Firm's prudential category

IMRO

Investment management firm

PIA

Personal investment firm

SFA

Securities and futures firm

SUP App 1.8.4G

Note 4

SRO to whose Financial Supervision requirements the firm was subject

Firm's prudential category

IMRO

Investment management firm

PIA

Personal investment firm

SFA

Securities and futures firm

SUP App 1.8.5G

Note 5

Only a small number of firms are expected to be authorised under section 25 of the Financial Services Act 1986 immediately prior to commencement and not be a member of one of the SROs. These firms are directly regulated by the FSA under the Financial Services Act 1986.