Related provisions for PERG 5.5.3
1 - 20 of 38 items.
This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as agent;(2) arranging (bringing about) deals in investments, and4making arrangements with a view to transactions in investments;44(2A) arranging a home finance transaction;4(3) assisting in the administration and performance of a contract of insurance;(4) safeguarding and administering investments; and(5) advising on investments,15advising on regulated credit
This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as principal;(2) dealing in investments as agent;(3) arranging (bringing about) deals in investments and making arrangements with a view to transactions in investments;(4) managing investments;(5) safeguarding and administering investments; and(6) advising on investments.
This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as principal;(2) dealing in investments as agent;(3) arranging (bringing about) deals in investments and making arrangements with a view to transactions in investments;(4) managing investments;(5) safeguarding and administering investments;(6) sending dematerialised instructions; and(7) advising on investments.
This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as principal;(2) dealing in investments as agent;(3) arranging (bringing about) deals in investments and making arrangements with a view to transactions in investments; and(4) advising on investments.
This group of exclusions applies, in specified circumstance, to the regulated activities of:(1) dealing in investments as principal;(2) dealing in investments as agent;(3) arranging (bringing about) deals in investments and making arrangements with a view to transactions in investments;(4) safeguarding and administering investments.
This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as principal;(2) dealing in investments as agent;(3) arranging (bringing about) deals in investments and4making arrangements with a view to transactions in investments;4(3A) arranging a home finance transaction;4(3B) 5operating a multilateral trading facility;(3C) operating an organised trading facility;18(4) advising on investments;(5) entering into a home finance
The exclusions in this group apply to certain regulated activities involving certain contracts of insurance. The exclusions and the regulated activities to which they apply are as follows.(1) The first exclusion of this kind relates to certain activities carried on by a provider of non-motor goods or services,19 or services related to travel in connection with general insurance contracts that satisfy a number of conditions.19777(a) The contracts must:19(i) have a premium of:19(A)
1This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as agent;(2) arranging (bringing about) deals in investments and making arrangements with a view to transactions in investments;(3) managing investments;(4) safeguarding and administering investments;(4A) managing a UK UCITS21; 13(4B) managing an AIF;13(5) establishing, operating or winding up a collective investment scheme; and(6) advising on investments.
313This exclusion applies to a person with a Part 4A permission to carry on the activity of managing an AIF or managing a UK UCITS21. The exclusion means that activities carried on by the person in connection with, or for the purposes of, managing a UK UCITS21 or (as the case may be) managing an AIF, are excluded from being regulated activities (except the activities of managing an AIF and managing a UK UCITS21 themselves). In the FCA's view this is particularly likely to affect
12This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) accepting deposits; (2) dealing in investments as agent;(3) arranging (bringing about) deals in investments;(4) making arrangements with a view to transactions in investments;(5) arranging (bringing about) regulated mortgage contracts;(6) making arrangements with a view to regulated mortgage contracts;(7) arranging (bringing about) a home reversion plan;(8) making arrangements with
(1) 12Subject to (2), (3) and (4),15 the exclusions apply, in relation to any activity carried on by a local authority.15(2) The exclusion relating to the regulated activities of:(a) dealing in investments as agents;(b) arranging (bringing about) deals in investments;(c) making arrangements with a view to transactions in investments;(d) assisting in the administration and performance of a contract of insurance; and(e) advising on investments;applies to any activity carried on
12This group of exclusions applies, in specified circumstances, to the regulated activities of:(1) dealing in investments as principal;(2) dealing in investments as agent;(3) arranging (bringing about) deals in investments;(4) making arrangements with a view to transactions in investments;(5) operating a multilateral trading facility;(5A) operating an organised trading facility;18(6) managing investments;(7) assisting in the administration and performance of a contract of insurance;(8)
26The following regulated activities apply to deposits that are structured deposits in addition to the regulated activity of accepting deposits:(1) dealing in investments as agent;(2) arranging (bringing about) deals in investments;(3) making arrangements with a view to transactions in investments;(4) managing investments; and(5) advising on investments.
In addition, certain other activities carried on in relation to rights under contracts of insurance are regulated activities. These are where the activity is carried on in relation to:(1) life policies, where the regulated activities concerned are:(a) dealing in investments as principal (see PERG 2.7.5 G);(b) managing investments (see PERG 2.7.8 G);(c) safeguarding and administering investments (see PERG 2.7.9 G); and(d) agreeing to carry on any of those activities (see PERG 2.7.21
Both the activities of dealing in investments as principal and dealing in investments as agent are defined in terms of 'buying, selling, subscribing for or underwriting' certain investments. These investments are:(1) for dealing in investments as principal, securities or contractually based investments (except rights under a funeral plan contract); and(2) for dealing in investments as agent, securities, structured deposits26 and relevant investments (except rights under a funeral
11(1) 36As explained in PERG 2.6.19DG, an emission allowance and an emissions auction product are both specified investments. The Regulated Activities Order deals with this as follows.3326(2) 36A person in the first category in PERG 2.7.6BG requires permission from the FCA for bidding in emissions auctions but does not require any other permission to do so.3326(3) 36A person in the second category in PERG 2.7.6BG does not require any permission from the FCA for bidding.3326(4)
5Guidance on the MiFID investment service of operating a multilateral trading facility is given in PERG 13, Q24. An activity that comes within26 the regulated activity of operating a multilateral trading facility does not come within the regulated activities26 of dealing in investments as agent, dealing in investments as principal or arranging deals in investments. 26
26Guidance on the MiFID investment service of operating an organised trading facility is given in PERG 13, Q24A. An activity that comes within the regulated activity of operating an organised trading facility does not come within the regulated activities of dealing in investments as agent, dealing in investments as principal or arranging deals in investments.
The regulated activity of managing investments includes several elements.(1) First, a person must exercise discretion. Non-discretionary portfolio management (where the manager buys and sells, as principal or agent, on the instructions of some other person) is not caught by this activity, although it may be caught by a different regulated activity such as the activity of dealing in investments as principal or dealing in investments as agent. The discretion must be exercised in
Intermediaries with delegated authority to bind insurance undertakings are likely to be dealing in investments as agent. It should be noted, in particular, that this is a regulated activity:(1) whether or not any advice is given (see PERG 5.8 (The regulated activities: advising on contracts of insurance); and(2) whether or not the intermediary deals through an authorised person (for example, where he instructs another agent who is an authorised person to enter into a contract
The5 following exclusions do not apply if they concern transactions relating to contracts of insurance:(1) dealing in investments as agent with or through authorised persons (article 22 of the Regulated Activities Order (Deals with or through authorised persons));(2) arranging transactions to which the arranger is to be a party, where the arranger enters into or is to enter into the transaction:(a) as agent for another person; or(b) as principal, unless the arranger is the only
3Article 72G (Local authorities) excludes from the activities of dealing in investments as agent, arranging (bringing about) deals in investments, making arrangements with a view to transactions in investments, assisting in the administration and performance of a contract of insurance and advising on investments any activity carried on by a local authority which relates to a contract of insurance which is not a life policy.
3Article 72H (Insolvency Practitioners) excludes from the activities of dealing in investments as agent, arranging (bringing about) deals in investments, making arrangements with a view to transactions in investments, assisting in the administration and performance of a contract of insurance and advising on investments any activity carried on by a person acting as an insolvency practitioner.
(1) The Appointed Representatives Regulations are made by the Treasury under sections 39(1)18, (1C) and (1E)15 of the Act. These regulations describe, among other things, the business for which an appointed representative may be exempt or to which sections 20(1) and (1A) and 23(1A) of the Act may not apply15, which is business which comprises any of:(a) dealing in investments as agent (article 21 of the Regulated Activities Order) where the transaction relates to a pure protection
(1) An introducer appointed representative is an appointed representative appointed by a firm whose scope of appointment must, under SUP 12.5.7 R, be limited to:(a) effecting introductions to the firm or other members of the firm's group; and5(b) distributing non-real time financial promotions which relate to products or services available from or through the firm or other members of the firm's group.5(2) The permitted scope of appointment of an introducer appointed representative
(1) A representative is an individual who is appointed by a firm or an appointed representative, to carry on any of the activities in (1)(a) to (c):54(a) advising on investments;5(b) arranging (bringing about) deals in investments;5(c) dealing in investments as agent.5(2) If a firm appoints an appointed representative who is an individual in (1), that appointed representative will also be a representative. The individual may need to be approved to perform the customer function9,
It must be emphasised that activities which concern invitations to renew policies and the subsequent effecting of renewal of policies are likely to fall within insurance distribution activity2. Those considering the need for authorisation or variation of their permissions will wish to consider whether a process of tacit renewal operates: that is, where a policyholder need take no action if they wish to maintain their2 insurance cover by having their2policy 'renewed'. This process
[Editor’s note: The text of this provision has been moved to SYSC 25 Annex 1G]4
The regulated activity of dealing in investments as agent applies to specified transactions relating to any security or to any relevant investment (apart from rights under funeral plan contracts or rights to or interests in such rights). In addition, the activity is cut back by exclusions as follows.(1) An exclusion applies to certain transactions entered into by an agent who is not an authorised person which depend on him dealing with (or through) an authorised person. It does
2The exclusions referred to in PERG 2.8.5G (1), (2) and (3)(a),4 (b), (c), (d) and (j) will not be available to persons who, when4 carrying on the activity of dealing in investments as agent, are MiFID investment firms or third country investment firms4 (see PERG 2.5.4 G to PERG 2.5.5 G4 (Investment services and activities)).44
(1) A firm must not agree to:(a) deal in investments as agent for an insurance undertaking in connection with an insurance distribution activity3; or(b) act
as agent for an insurance undertaking for
the purpose of settling claims or handling premium refunds;
or(c) otherwise
receive money as agent of an insurance undertaking;unless:(d) it
has entered into a written agreement with the insurance
undertaking to that effect; and(e) it
is satisfied on reasonable grounds that the terms
(1) Regulations 3(1) 8and (2) of the Appointed Representatives Regulations make it a requirement that the contract between the firm and the appointed representative (unless it prohibits the appointed representative from representing other counterparties) contains a provision enabling the firm to:488(a) impose such a prohibition; or(b) impose restrictions as to the other counterparties which the appointed representative may represent, or as to the types of investment in relation
Insurance insurance distribution activities2 activities able to be carried on by an appointed representative. This table belongs to PERG 5.13.3 G.
Type of contract of insurance |
Regulated activities an appointed representative can carry on |
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[deleted] Editor’s note: The text of this provision has been moved to SYSC 27.8.19R]8
3The customer function is the function of:(1) advising on investments other than a non-investment insurance contract (but not where this is advising on investments in the course of carrying on the activity of giving basic advice on a stakeholder product) and performing other functions related to this such as dealing and arranging; (2) giving advice to clients solely in connection with corporate finance business and performing other functions related to this; (3) giving advice or
As a result,4 each of the regulated activities below potentially applies4 to any contract of insurance:(1) dealing in investments as agent (article 21 (Dealing in investments as agent));(2) arranging (bringing about) deals in investments (article 25(1) (Arranging deals in investments));(3) making arrangements with a view to transactions in investments (article 25(2) (Arranging deals in investments));(4) assisting in the administration and performance of a contract of insurance
- (1)
A firm may calculate either:
- (a)
one individual client balance for each client,1 based on the total of the firm's holdings for that1client; or
- (b)
a number of individual client balances for each client, equal to the number of products or business lines the firm operates for that client and each balance based on the total of the firm's holdings for that client in respect of the particular product or business line.1
- (a)
- (2)
Each individual client balance for a client should be calculated in accordance with this table:
Individual client balance calculation
Free money (sums held for a client free of sale or purchase (eg, see (3)(a)) and
A
sale proceeds due to the client:
(a)
for principal deals when the client has delivered the designated investments; and
B
(b)
for agency deals, when:
(i)
the sale proceeds have been received by the firm and the client has delivered the designated investments; or
C1
(ii)
the firm holds the designated investments for the client; and
C2
the cost of purchases:
(c)
for principal deals, paid for by the client when the firm has not delivered the designated investments to the client; and
D
(d)
(i)
the firm has not remitted the money to, or to the order of, the counterparty; or
E1
(ii)
the designated investments have been received by the firm but have not been delivered to the client;
E2
Less
money owed by the client for unpaid purchases by, or for, the client if delivery of those designated investments has been made to the client; and
F
proceeds remitted to the client for sales transactions by, or for, the client if the client has not delivered the designated investments.
G
Individual client balance 'X' = (A+B+C1+C2+D+E1+E2)-F-G
X
- (3)
When calculating an individual client balance for each client, a firm should also:
- (a)
ensure it includes:
- (i)
client money consisting of dividends received and interest earned and allocated (see CASS 7.11.32 R);
- (ii)
client money consisting of dividends (actual or payments in lieu), stock lending fees and other payments received and allocated (see CASS 6.1.2 G);
- (iii)
money the firm appropriates and segregates as client money to cover an unresolved shortfall in safe custody assets it identifies in its internal records which is attributable to an individual client (see CASS 6.6.54R (2)); and
- (iv)
money the firm segregates as client money instead of an individual client's safe custody asset until such time as the relevant delivery versus payment transaction settles under CASS 6.1.12R (2); and
- (i)
- (b)
deduct any amounts due and payable by the client to the firm (see CASS 7.11.25 R).
- (a)
- (4)
Compliance with (1), (2) and (3)1 may be relied on as tending to establish compliance with CASS 7.16.21 R.
Unless a firm is listed in the table below, this section does not apply to it where both of the following conditions are satisfied:
- (1)
the firm has reported total revenue of less than £5 million as at its last accounting reference date; and
- (2)
the firm only has permission to carry on one or more of the following activities:
- (a)
- (b)
- (c)
- (d)
- (e)
making arrangements with a view to transactions in investments;
- (f)
assisting in the administration and performance of a contract of insurance in relation to non-investment insurance contracts;
- (g)
- (h)
- (i)
- (j)
- (k)
- (l)
establishing, operating or winding up a collective investment scheme;
- (m)
establishing, operating or winding up a personal pension scheme;
- (n)
establishing, operating or winding up a stakeholder pension scheme;
- (o)
- (p)
- (q)
- (r)
- (s)
- (t)
Table: Firms to which the exclusion in SUP 16.23.2R does not apply
a UK bank; |
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a non-UK bank;2 |
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a mortgage administrator; or |
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a firm offering life and annuity insurance products. |