Status: You are viewing the version of the handbook as on 2012-12-13.

securities and futures firm

    (subject to BIPRU TP 1 (Revised definition of securities and futures firm for certain transitional purposes)) 45a firm whose permitted activities include designated investment business or bidding in emissions auctions108, which is not an authorised professional firm, bank, BIPRU investment firm (unless it is an exempt BIPRU commodities firm)54,45 building society, credit union, friendly society, ICVC, insurer, media firm, service company, incoming EEA firm (without a top-up permission), incoming Treaty firm (without a top-up permission), UCITS management company or UCITS qualifier (without a top-up permission), whose permission does not include a requirement that it comply with IPRU(INV) 5 (Investment management firms) or 13 (Personal investment firms), and which is within (a), (b), (c), (d), (e), (f), (g) or (h):108 54

      1. (a) a firm (other than one falling within (d)):
        1. (i) which was a member of SFA immediately before commencement; and
        1. (ii) which was not, immediately before commencement, subject to the financial supervision requirements of the FSA (under section 43 of the Financial Services Act 1986), orPIA or IMRO (under lead regulation arrangements);
      1. (b) a firm whose permission includes a requirement that it comply with IPRU(INV) 3 54(Securities and futures firms);
      1. (c) a firm:
        1. (i) which was given a Part IV permission after commencement, or which was authorised under section 25 of the Financial Services Act 1986 immediately before commencement and not a member of IMRO, PIA or SFA; and
        1. (ii) for 71which71the most substantial part of its gross income71( including commissions)71 from the 71 designated investment business 71 included in its Part IV permission is derived from one or more of the following activities (based, for a firm given a Part IV permission after commencement, on the business plan submitted as part of the firm's application for permission or, for a firm authorised under section 25 of the Financial Services Act 1986, on thefirm's financial year preceding its authorisation under the Act):
          1. (A) an activity carried on as a member of an exchange;
          1. (B) making a market in securities or derivatives;
          1. (C) corporate finance business;
          1. (D) dealing71(excluding, in the case of a home finance provider, dealing as principal in contractually based investments where this activity is carried out for risk management purposes and would have been excluded under article 16 of the Regulated Activities Order if the firm were an unauthorised person or under article 19 of the Regulated Activities Order),71 arranging (bringing about) deals in investments or making arrangements with a view to transactions in investments,71 in securities or derivatives;
          1. (E) the provision of clearing services as a clearing firm;
          1. (F) managing investments, where those investments are primarily derivatives;
          1. (G) activities relating to spread bets;
      1. (d) a firm that is:
          1. (i) an ex-section 43 firm which was not authorised under the Financial Services Act 1986 immediately before commencement; or
          1. (ii) an ex-section 43 lead regulated firm;
      1. (e) an energy market participant;
      1. (f) an oil market participant5371354;54
      1. (g) an exempt BIPRU commodities firm;108196 54
      1. (h) a firm that is exempt from MiFID under article 2(1)(i) whose permitted activities include bidding in emissions auctions.108