AUTH 1
Introduction to the Authorisation manual
AUTH 1.1
Application and purpose
- 01/12/2004
Application
AUTH 1.1.1
See Notes
Purpose
AUTH 1.1.2
See Notes
- 03/09/2001
AUTH 1.1.3
See Notes
AUTH 1.2
Introduction
- 01/12/2004
AUTH 1.2.1
See Notes
AUTH 1.2.2
See Notes
- 03/09/2001
AUTH 1.2.3
See Notes
AUTH 1.2.4
See Notes
AUTH 1.2.5
See Notes
AUTH 1.2.6
See Notes
AUTH 1.3
The Authorisation manual
- 01/12/2004
AUTH 1.3.1
See Notes
- 03/09/2001
AUTH 1.3.2
See Notes
- 18/10/2001
AUTH 1.3.3
See Notes
- 01/04/2005
- Past version of AUTH 1.3.3 before 01/04/2005
AUTH 1.3.4
See Notes
- 03/09/2001
AUTH 1.3.5
See Notes
- 03/09/2001
AUTH 1.3.6
See Notes
- 01/04/2005
- Past version of AUTH 1.3.6 before 01/04/2005
AUTH 1.3.7
See Notes
AUTH 1.3.8
See Notes
- 03/09/2001
AUTH 1.3.9
See Notes
Summary of AUTH
This table belongs to AUTH 1.3.7 G
Chapter: | Applicable to: | On: |
AUTH 2: Authorisation and regulated activities | a person wishing to find out whether it needs to be authorised (or is an exempt person). | the Act, the Regulated Activities Order and the Exemption Order. |
AUTH 3: Applications for Part IV permission | an applicant for Part IV permission. | how the FSA will exercise the powers granted to it in Part IV of the Act to determine and, if appropriate, grant an application for Part IV permission. |
AUTH 4: Authorisation Fees | an applicant for Part IV permission. | the fees the FSA will levy on applicants for Part IV permission. |
AUTH 5: Qualifying for authorisation under the Act | 1. an EEA firm wishing to exercise its EEA right and establish a branch in, or provide cross border services into, the United Kingdom; | how an EEA firm, a Treaty firm or a UCITS qualifier can qualify for authorisation under the Act. |
2. a Treaty firm wishing to exercise its Treaty rights; | ||
3. a prospective UCITS qualifier. | ||
AUTH 6: Approved persons | 1. an applicant
for Part IV permission seeking
approval for a person to perform a controlled
function under arrangements to
be entered into by the firm or
its contractors (including appointed
representatives); 2. a candidate. | 1. the controlled functions that
the FSA has
specified; and. 2. how the FSA will exercise the powers given to it in Part V of the Act to require firms to obtain prior approval for persons who will perform controlled functions. |
Note: EEA firms, Treaty firms and UCITS qualifiers should refer to SUP 10 (Application). | ||
AUTH 7: Periodical publications, news services and broadcasts: application for certification | anyone involved in publishing periodicals, or in providing news services or broadcasts, who gives (or proposes to give) advice about securities or contractually based investments. | 1. whether the person will be carrying on the regulated activity of advising on investments; and |
2. how the FSA will exercise its power to give certificates. | ||
AUTH 8: Determining applications | 1. applicants for Part IV permission generally; | 1. the procedures which the FSA will follow when granting an application; and |
2. an EEA firm or a Treaty firm that has submitted an application for approval of a person under the approved persons regime; | 2. a summary
of the FSA's decision
making procedures for: (a) refusing, or proposing to refuse, an application for Part IV permission or an application for approval under the approved persons regime; or | |
3. a candidate. | (b) granting, or proposing to grant, an application for Part IV permission subject to limitations or requirements not applied for or with a narrower description of regulated activity than that to which the application relates. |
AUTH 1.4
The FSA's approach to applications for Part IV permission: an overview
- 01/12/2004
AUTH 1.4.1
See Notes
- 03/09/2001
AUTH 1.4.2
See Notes
- 03/09/2001
AUTH 1.4.3
See Notes
- 03/09/2001
The FSA's approach to risk assessment
AUTH 1.4.4
See Notes
- 03/09/2001
AUTH 1.5
Understanding the requirements and standards of the regulatory system
- 01/12/2004
AUTH 1.5.1
See Notes
- 03/09/2001
AUTH 1.5.2
See Notes
- 03/09/2001
AUTH 1.5.3
See Notes
AUTH 1.5.4
See Notes
- 03/09/2001
AUTH 1.6
Applying for Part IV permission: overview of the process
- 01/12/2004
AUTH 1.6.1
See Notes
- 03/09/2001
AUTH 1.6.2
See Notes
- 03/09/2001
AUTH 1.6.3
See Notes
- 03/09/2001
AUTH 1.6.4
See Notes
- 03/09/2001
AUTH 1.6.5
See Notes
- 03/09/2001
AUTH 1.6.6
See Notes
AUTH 1.6.7
See Notes
- 01/07/2003
AUTH 1.6.8
See Notes
- 01/07/2003
AUTH 1.6.9
See Notes
AUTH 1.6.10
See Notes
- 03/09/2001
AUTH 1.6.11
See Notes
- 03/09/2001
AUTH 1.6.12
See Notes
- 01/07/2003
AUTH 1.7
Appointed representatives
- 01/12/2004
AUTH 1.7.1
See Notes
- 03/09/2001
AUTH 1.7.2
See Notes
- 18/10/2001
AUTH 1.8
What other general guidance is available from the FSA?
- 01/12/2004
AUTH 1.8.1
See Notes
- 03/09/2001
AUTH 1.8.2
See Notes
AUTH 1.8.3
See Notes
- 03/09/2001
AUTH 1.8.4
See Notes
- 01/10/2002
AUTH 1.8.5
See Notes
- 01/04/2005
- Past version of AUTH 1.8.5 before 01/04/2005
AUTH 1.9
Next steps?
- 01/12/2004
AUTH 1.9.1
See Notes
- 03/09/2001
AUTH 1.9.2
See Notes
Who to contact at the FSA
This table belongs to AUTH 1.9.1 G
FSA dept. | For advice on: | Contact details: |
Authorisation and Approvals Department | The authorisation aspects of the Act and relevant secondary legislation made under the Act (for example, the Regulated Activities Order) | Authorisation
Enquiries The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 0082 |
Authorisation and Approvals Department | Applications for Part IV permission | Authorisation
Teams The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 3954 email: corporate.authorisation@fsa.gov.uk |
Regulatory Decisions | Passporting notifications (into or out of the United Kingdom) | Passport Notification
Unit The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 1000 email: passport.notifications@fsa.gov.uk |
Authorisation and Approvals Department | Applications for approval of persons under the approved persons regime | Enquiries and
Applications Department (Individual Approvals team) The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 0019 Fax: 020 7066 0017 email: iva@fsa.gov.uk |
- 01/07/2003
AUTH 1 Annex 1
Introduction to the Authorisation Manual
- 01/12/2004
Where to next?
AUTH 1 Ann 1
See Notes
AUTH 2
Authorisation and regulated activities
AUTH 2.1
Application and purpose
- 01/12/2004
Application
AUTH 2.1.1
See Notes
- 03/09/2001
Purpose
AUTH 2.1.2
See Notes
- 03/09/2001
AUTH 2.2
Introduction
- 01/12/2004
AUTH 2.2.1
See Notes
- 03/09/2001
AUTH 2.2.2
See Notes
- 03/09/2001
AUTH 2.2.3
See Notes
- 03/09/2001
AUTH 2.2.4
See Notes
- 03/09/2001
AUTH 2.2.5
See Notes
- 03/09/2001
AUTH 2.3
The business element
- 01/12/2004
AUTH 2.3.1
See Notes
- 03/09/2001
AUTH 2.3.2
See Notes
- 01/10/2002
AUTH 2.3.3
See Notes
- 03/09/2001
AUTH 2.4
Link between activities and the United Kingdom
- 01/12/2004
AUTH 2.4.1
See Notes
- 03/09/2001
AUTH 2.4.2
See Notes
- 03/09/2001
AUTH 2.4.3
See Notes
- 21/08/2002
AUTH 2.4.4
See Notes
- 03/09/2001
AUTH 2.4.5
See Notes
- 03/09/2001
AUTH 2.4.6
See Notes
- 03/09/2001
AUTH 2.4.7
See Notes
- 21/08/2002
AUTH 2.5
Investments and activities: general
- 01/12/2004
AUTH 2.5.1
See Notes
- 03/09/2001
AUTH 2.5.2
See Notes
- 03/09/2001
Modification of certain exclusions as a result of Investment Services and Insurance Mediation Directives
AUTH 2.5.3
See Notes
- 03/09/2001
Investment services
AUTH 2.5.4
See Notes
- 03/09/2001
AUTH 2.5.5
See Notes
- 01/10/2002
Insurance mediation or reinsurance meditation
AUTH 2.5.6
See Notes
- 03/09/2001
AUTH 2.6
Specified investments: a broad outline
- 01/12/2004
AUTH 2.6.1
See Notes
- 03/09/2001
Deposits
AUTH 2.6.2
See Notes
- 03/09/2001
AUTH 2.6.3
See Notes
- 01/10/2002
AUTH 2.6.4
See Notes
- 03/09/2001
Electronic Money
AUTH 2.6.4A
See Notes
- 27/04/2002
Rights under a contract of insurance
AUTH 2.6.5
See Notes
- 03/09/2001
AUTH 2.6.6
See Notes
- 03/09/2001
AUTH 2.6.7
See Notes
- 03/09/2001
AUTH 2.6.8
See Notes
- 03/09/2001
Shares etc
AUTH 2.6.9
See Notes
- 03/09/2001
AUTH 2.6.10
See Notes
- 03/09/2001
Debt instruments
AUTH 2.6.11
See Notes
- 03/09/2001
AUTH 2.6.12
See Notes
- 03/09/2001
Warrants
AUTH 2.6.13
See Notes
- 03/09/2001
AUTH 2.6.14
See Notes
- 03/09/2001
Certificates representing securities
AUTH 2.6.15
See Notes
- 03/09/2001
AUTH 2.6.16
See Notes
- 03/09/2001
Units
AUTH 2.6.17
See Notes
- 03/09/2001
AUTH 2.6.18
See Notes
- 03/09/2001
Rights under a stakeholder pension scheme
AUTH 2.6.19
See Notes
Options
AUTH 2.6.20
See Notes
- 03/09/2001
Futures
AUTH 2.6.21
See Notes
- 03/09/2001
AUTH 2.6.22
See Notes
- 03/09/2001
Contracts for differences
AUTH 2.6.23
See Notes
- 03/09/2001
AUTH 2.6.24
See Notes
- 03/09/2001
Lloyd's investments
AUTH 2.6.25
See Notes
- 03/09/2001
Rights under a funeral plan
AUTH 2.6.26
See Notes
- 03/09/2001
Rights under a regulated mortgage contract
AUTH 2.6.27
See Notes
- 31/10/2004
Rights to or interests in investments
AUTH 2.6.28
See Notes
- 31/10/2004
AUTH 2.6.29
See Notes
- 03/09/2001
AUTH 2.7
Activities: a broad outline
- 01/12/2004
AUTH 2.7.1
See Notes
- 03/09/2001
Accepting deposits
AUTH 2.7.2
See Notes
- 03/09/2001
Issuing e-money
AUTH 2.7.2A
See Notes
- 01/10/2002
Effecting or carrying out contracts of insurance as principal
AUTH 2.7.3
See Notes
- 03/09/2001
AUTH 2.7.4
See Notes
- 03/09/2001
Dealing in investments (as principal or agent)
AUTH 2.7.5
See Notes
- 03/09/2001
AUTH 2.7.6
See Notes
- 03/09/2001
AUTH 2.7.6A
See Notes
- 14/01/2005
Arranging deals in investments and arranging regulated mortgage activities
AUTH 2.7.7
See Notes
- 18/10/2001
AUTH 2.7.7A
See Notes
- 01/10/2002
AUTH 2.7.7B
See Notes
- 14/01/2005
AUTH 2.7.7C
See Notes
- 14/01/2005
Managing investments
AUTH 2.7.8
See Notes
- 03/09/2001
Assisting in the administration and performance of a contract of insurance
AUTH 2.7.8A
See Notes
- 14/01/2005
Safeguarding and administering investments
AUTH 2.7.9
See Notes
- 03/09/2001
AUTH 2.7.10
See Notes
- 03/09/2001
Sending dematerialised instructions
AUTH 2.7.11
See Notes
- 03/09/2001
Establishing etc collective investment schemes
AUTH 2.7.12
See Notes
- 01/04/2004
AUTH 2.7.13
See Notes
In addition, express provision is included in the Regulated Activities Order to make acting as trustee of an authorised unit trust scheme into a regulated activity. The full picture for authorised schemes (that is, schemes that can be promoted to the public) is as follows:
- (1) Acting as trustee of an authorised unit trust scheme is expressly included as a regulated activity.
- (2) Acting as a depositary of an open-ended investment company that is authorised under regulations made under section 262 of the Act (Open-ended investment companies), is a regulated activity.
- (3) Acting as a sole director of such a company is a regulated activity.
- (4) Managing an authorised unit trust scheme will amount to operating the scheme and so will be a regulated activity. A person acting as manager is also likely to be carrying on other regulated activities (such as dealing (see AUTH 2.7.5 G) or managing investments (see AUTH 2.7.8 G)).
- (5) An open-ended investment company will, once it is authorised under regulations made under section 262 of the Act, become an authorised person in its own right under Schedule 5 to the Act (Persons concerned in Collective Investment Schemes). Under ordinary principles, a company operates itself and an authorisedopen-ended investment company will be operating the collective investment scheme constituted by the company. It is not required to go through a separate process of authorisation as a person because it has already undergone the process of product authorisation.
- (6) Operators, trustees or depositaries of UCITS schemes constituted in other EEA States are also authorised persons under Schedule 5 of the Act if those schemes qualify as recognised collective investment schemes for the purposes of section 264 of the Act.
- 03/09/2001
Establishing etc stakeholder pension schemes
AUTH 2.7.14
See Notes
- 03/09/2001
Advising on investments
AUTH 2.7.15
See Notes
- 03/09/2001
AUTH 2.7.16
See Notes
- 03/09/2001
Advising on regulated mortgage contracts
AUTH 2.7.16B
See Notes
- 14/01/2005
Lloyd's activities
AUTH 2.7.17
See Notes
- 03/09/2001
Entering funeral plan contracts
AUTH 2.7.18
See Notes
- 01/10/2002
AUTH 2.7.19
See Notes
- 03/09/2001
Entering into and administering a regulated mortgage contract
AUTH 2.7.20
See Notes
- 01/10/2002
Agreeing
AUTH 2.7.21
See Notes
- 01/10/2002
AUTH 2.8
Exclusions applicable to particular regulated activities
- 01/12/2004
AUTH 2.8.1
See Notes
- 03/09/2001
Accepting deposits
AUTH 2.8.2
See Notes
- 21/08/2002
Issuing e-money
AUTH 2.8.2A
See Notes
- 27/04/2002
Effecting and carrying out contracts of insurance
AUTH 2.8.3
See Notes
- 21/08/2002
Dealing in investments as principal
AUTH 2.8.4
See Notes
The regulated activity of dealing in investments as principal applies to specified transactions relating to any security or to any contractually based investment (apart from rights under funeral plan contracts or rights to or interests in such contracts). The activity is cut back by exclusions as follows.
- (1) Of particular significance is the exclusion in article 15 of the Regulated Activities Order (Absence of holding out etc). This applies where dealing in investments as principal involves entering into transactions relating to any security or assigning rights under a life policy (or rights or interests in such a contract). In effect, it superimposes an additional condition that must be met before a person's activities become regulated activities. The additional condition is that a person must hold himself out as making a market in the relevant specified investments or as being in the business of dealing in them, or he must regularly solicit members of the public with the purpose of inducing them to deal. This exclusion does not apply to dealing activities that relate to any contractually based investment except the assigning of rights under a life policy.
- (2) Entering into a transaction relating to a contractually based investment is not regulated if the transaction is entered into by an unauthorised person and it takes place in either of the following circumstances (a transaction entered into by an authorised person would be caught). The first set of circumstances is where the person with whom the unauthorised person deals is either an authorised person or an exempt person who is acting in the course of a business comprising a regulated activity in relation to which he is exempt. The second set of circumstances is where the unauthorised person enters into a transaction through a non-UK office (which could be his own) and he deals with or through a person who is based outside the United Kingdom. This non-UK person must be someone who, as his ordinary business, carries on any of the activities relating to securities or contractually based investments that are generally treated as regulated activities.
- (3) A person (for example, a bank) who provides another person with finance for any purpose can accept an instrument acknowledging the debt (and as security for it) without risk of dealing as principal as a result.
- (4) A company does not deal as principal by issuing its own shares or share warrants and a person does not deal as principal by issuing his own debentures or debenture warrants.
- (5) Risk-management activities involving options, futures and contracts for differences will not require authorisation if specified conditions are met. The conditions include the company's business consisting mainly of unregulated activities and the sole or main purpose of the risk management activities being to limit the impact on that business of certain kinds of identifiable risk.
- (6) A person will not be treated as carrying on the activity of dealing in investments as principal if, in specified circumstances (outlined in AUTH 2.9), he enters as principal into a transaction:
- (a) while acting as bare trustee (or, in Scotland, as nominee);
- (b) in connection with the sale of goods or supply of services;
- (c) that takes place between members of a group or joint enterprise;
- (d) in connection with the sale of a body corporate;
- (e) in connection with an employee share scheme;
- (f) as an overseas person;
- (g) as an incoming ECA provider (see AUTH 2.9.18 G).
- 01/10/2002
AUTH 2.8.4A
See Notes
- 14/01/2005
AUTH 2.8.4B
See Notes
- 14/01/2005
Dealing in investments as agent
AUTH 2.8.5
See Notes
- 21/08/2002
Arranging deals in investments and arranging regulated mortgage contracts
AUTH 2.8.6
See Notes
- 01/10/2002
Managing investments
AUTH 2.8.7
See Notes
- 21/08/2002
Assisting in the administration and performance of a contract of insurance
AUTH 2.8.7A
See Notes
- 14/01/2005
AUTH 2.8.7B
See Notes
- 14/01/2005
Safeguarding and administering investments
AUTH 2.8.8
See Notes
- 21/08/2002
Sending dematerialised instructions
AUTH 2.8.9
See Notes
- 01/10/2002
Establishing etc collective investment schemes
AUTH 2.8.10
See Notes
- 21/08/2002
Establishing etc stakeholder pension schemes
AUTH 2.8.11
See Notes
- 01/10/2002
Advising on investments
AUTH 2.8.12
See Notes
- 21/08/2002
Lloyd's activities
AUTH 2.8.13
See Notes
- 03/09/2001
Entering funeral plan contracts
AUTH 2.8.14
See Notes
- 21/08/2002
Administering regulated mortgage contracts
AUTH 2.8.14A
See Notes
- 14/01/2005
Agreeing
AUTH 2.8.15
See Notes
- 21/08/2002
AUTH 2.8.16
See Notes
- 03/09/2001
AUTH 2.9
Regulated activities: exclusions applicable into certain circumstances
- 01/12/2004
AUTH 2.9.1
See Notes
- 01/10/2002
AUTH 2.9.2
See Notes
- 03/09/2001
Trustees, nominees or personal representatives
AUTH 2.9.3
See Notes
- 03/09/2001
AUTH 2.9.4
See Notes
- 03/09/2001
Professions or business not involving regulated activities
AUTH 2.9.5
See Notes
- 03/09/2001
AUTH 2.9.6
See Notes
- 21/02/2002
Sale of goods and supply of services
AUTH 2.9.7
See Notes
- 03/09/2001
AUTH 2.9.8
See Notes
- 31/10/2004
Group and joint enterprises
AUTH 2.9.9
See Notes
- 03/09/2001
AUTH 2.9.10
See Notes
- 03/09/2001
Sale of body corporate
AUTH 2.9.11
See Notes
- 03/09/2001
AUTH 2.9.12
See Notes
- 03/09/2001
Employee share schemes
AUTH 2.9.13
See Notes
- 03/09/2001
AUTH 2.9.14
See Notes
- 03/09/2001
Overseas persons
AUTH 2.9.15
See Notes
- 03/09/2001
AUTH 2.9.16
See Notes
- 03/09/2001
AUTH 2.9.17
See Notes
- 03/09/2001
AUTH 2.9.17A
See Notes
- 14/01/2005
Incoming ECA providers
AUTH 2.9.18
See Notes
- 03/09/2001
Insurance mediation activities
AUTH 2.9.19
See Notes
- 03/09/2001
AUTH 2.10
Persons carrying on regulated activities who do not need authorisation
- 01/12/2004
AUTH 2.10.1
See Notes
- 03/09/2001
AUTH 2.10.2
See Notes
- 03/09/2001
AUTH 2.10.3
See Notes
- 03/09/2001
AUTH 2.10.4
See Notes
- 03/09/2001
Appointed representatives
AUTH 2.10.5
See Notes
- 03/09/2001
Recognised Investment Exchanges and Recognised Clearing Houses
AUTH 2.10.6
See Notes
- 03/09/2001
Particular exempt persons
AUTH 2.10.7
See Notes
- 03/09/2001
AUTH 2.10.8
See Notes
- 03/09/2001
Members of Lloyd's
AUTH 2.10.9
See Notes
- 03/09/2001
AUTH 2.10.10
See Notes
- 03/09/2001
AUTH 2.10.11
See Notes
- 03/09/2001
Members of the professions
AUTH 2.10.12
See Notes
- 03/09/2001
AUTH 2.10.13
See Notes
- 03/09/2001
AUTH 2.10.14
See Notes
- 03/09/2001
AUTH 2.10.15
See Notes
- 03/09/2001
AUTH 2.10.16
See Notes
- 03/09/2001
AUTH 2.11
What to do now?
- 01/12/2004
AUTH 2.11.1
See Notes
- 03/09/2001
AUTH 2 Annex 1
Authorisation and regulated activities
- 01/12/2004
Do you need authorisation?
AUTH 2 Annex 1
See Notes
- 03/09/2001
AUTH 2 Annex 2
Regulated activities and the permission regime
- 01/12/2004
AUTH 2 Annex 2.1
See Notes
1.1 G | Table 1 is designed to relate the permission regime to regulated activities. Section 42(6) of the Act gives the FSA the power to describe the regulated activity or regulated activities for which it gives permission in such manner as the FSA considers appropriate. Table 1 details how the FSA has chosen to describe the regulated activities and specified investments for the purposes of the permission regime. |
1.2 G | In an application for Part IV permission, an applicant will need to state the regulated activities it requires permission to carry on. This will involve an applicant identifying the regulated activities and the specified investments associated with those activities for which it requires Part IV permission. |
1.3 G | Part II of the Regulated Activities Order (Specified activities) specifies the activities for the purposes of section 22 of the Act. This section states that an activity is a regulated activity if it is an activity of a specified kind which is carried on by way of business and: |
(1) | relates to an investment of a specified kind; or |
(2) | in the case of an activity specified for the purposes of section 22(1)(b) of the Act, is carried on in relation to property of any kind. |
Part III of the Regulated Activities Order (Specified investments) specifies the investments referred to at AUTH 2 Annex 2. | |
1.4 G | Column 1 of Table 1 lists the regulated activities and column 2 lists the associated specified investments. Descriptions of some categories of specified investments are expanded in Tables 2 and 3. There are notes to all three tables which provide further explanation where appropriate. |
1.5 G | A reference to an article in the tables in AUTH 2 Annex 2 G is to the relevant article in the Regulated Activities Order. |
Table 1: Regulated Activities [See note 1 to Table 1] | ||
Regulated activity | Specified investment in relation to which the regulated activity (in the corresponding section of column one) may be carried on | |
Accepting deposits | ||
(a) accepting deposits (article 5) | deposit (article 74) | |
Issuing electronic money | ||
(aa) issuing electronic money (article 9B) | electronic money (article 74A) | |
Insurance business | ||
(b) effecting contracts of insurance (article 10(1)) | contract of insurance (article 75) [Expanded in Table 2] | |
(c) carrying out contracts of insurance (article 10(2)) | ||
Designated investment business [see note 1A and 1B to Table 1] | ||
(d) dealing in investments as principal (article 14) [see note 2 to Table 1] | security [Expanded in Table 3]; or | |
(e) dealing in investments as agent (article 21) [see note 2 to Table 1] | contractually based investment [Expanded in Table 3] | |
(f) arranging (bringing about) deals in investments (article 25(1)) [see note 1B to Table 1] [also see Sections of Table 1 headed 'Lloyd's market' and 'regulated mortgage activities'] | ||
(g) making arrangements with a view to transactions in investments (article 25(2)) [see note 1B to Table 1] [also see Sections of Table 1 headed 'Lloyd's market' and 'regulated mortgage activities'] | ||
(h) managing investments (article 37) [see note 3 to Table 1] | ||
(i) safeguarding and administering investments (article 40) [see note 3 Table 1] | ||
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | safeguarding and administration of assets (without arranging); | |
(ii) | arranging safeguarding and administration of assets | |
(j) advising on investments (article 53) [see note 1B to Table 1] [also see Section of Table 1 headed 'Lloyd's market' and 'regulated mortgage activity'] | ||
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | advising on investments (except pension transfers and pension opt-outs); | |
(ii) | advising on pension transfers and pension opt-outs [see note 4 to Table 1] | |
(k) sending dematerialised instructions (article 45(1)) | ||
(l) causing dematerialised instructions to be sent (article 45(2)) | ||
(m) establishing, operating or winding up a collective investment scheme (article 51(1(a)) | [see note 5 to Table 1] | |
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | establishing, operating or winding up a regulated collective investment scheme; | |
(ii) | establishing, operating or winding up an unregulated collective investment scheme | |
(n) acting as trustee of an authorised unit trust scheme (article 51(1)(b)) | ||
(o) acting as the depositary or sole director of an open-ended investment company (article 51(1)(c)) | ||
(p) establishing, operating or winding up a stakeholder pension scheme (article 52) | ||
Insurance mediation activity [see note 5A to Table 1] | ||
(pa) dealing in investments as agent (article 21) | life policy [see note 5B to Table 1] | |
(pb) arranging (bringing about) deals in investments (article 25(1)) | pure protection contract [see note 5C to Table 1] | |
(pc) making arrangements with a view to deals in investments (article 25(2)) | general insurance contract [see note 5D to Table 1] | |
(pd) assisting in the administration and performance of a contract of insurance (article 39A) | rights to or interests in investments (Article 89) in so far as they relate to a life policy | |
(pe) advising on investments (article 53) | ||
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | advising on investments (except pension transfers or pension opt-outs); | |
(ii) | advising on pension transfers or pension opt-outs [See note 5E to Table 1] | |
The Lloyd's market [see note 6 to Table 1] | ||
(q) advising on syndicate participation at Lloyd's (article 56) | membership of a Lloyd's syndicate (article 86(2)) | |
(r) managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's (article 57) | underwriting capacity of a Lloyd's syndicate (article 86(1)) | |
(s) arranging (bringing about) deals in investments (article 25(1)) | underwriting capacity of a Lloyd's syndicate (article 86(1)), membership of a Lloyd's syndicate (Article 86(2)) or rights to or interests in investments (Article 89) in so far as they relate to underwriting capacity of a Lloyd's syndicate or membership of a Lloyd's syndicate | |
(t) making arrangements with a view to transactions in investments (article 25(2)) | ||
Funeral plan providers | ||
(u) entering as provider into a funeral plan contract (article 59) [see note 1A] | funeral plan contract (article 87) | |
Regulated mortgage activity | ||
(v) arranging (bringing about) regulated mortgage contracts (article 25(A)(1)) | regulated mortgage contract (Article 88) | |
(w) making arrangements with a view to regulated mortgage contracts (article 25(A)(2)) | ||
(x) advising on regulated mortgage contracts (article 53A) | ||
(y) entering into a regulated mortgage contract (article 61(1)) | ||
(z) administering a regulated mortgage contract (article 61(2)) |
Notes to Table 1 |
Note 1: |
In addition to the regulated activities listed in Table 1, article 64 of the Regulated Activities Order specifies that agreeing to carry on a regulated activity is itself a regulated activity in certain cases. This applies in relation to all the regulated activities listed in Table 1 apart from: |
• accepting deposits (article 5); |
• issuing electronic money (article 9B) |
• effecting and carrying out contracts of insurance (article 10); |
•establishing, operating or winding up a collective investment scheme (article 51(a)); |
• acting as trustee of an authorised unit trust scheme (article 51(1)(b)); |
• acting as the depositary or sole director of an open-ended investment company (article 51(1)(c)); and |
• establishing, operating or winding up a stakeholder pension scheme (article 52). |
Permission to carry on the activity of agreeing to carry on a regulated activity will be given automatically by the FSA in relation to those other regulated activities for which an applicant is given permission (other than those activities in articles 5, 9B, 10, 51 and 52 detailed above). |
Note 1A: |
Funeral plan contracts are contractually based investments. Accordingly, the following are regulated activities when carried on in relation to a funeral plan contract: (a) arranging (bringing about) deals in investments, (b) making arrangements with a view to transactions in investments, (c) managing investments, (d) safeguarding and administering investments, (e) advising on investments, (f) sending dematerialised instructions and (g) causing dematerialised instructions to be sent (as well as agreeing to carry on each of the activities listed in (a) to (g)). However, they are not designated investment business. |
Note 1B: |
Life policies are contractually based investments. Where the regulated activities listed as designated investment business in (e) to (g) and (j) are carried on in relation to a life policy, these activities also count as 'insurance mediation activities'. The full list of insurance mediation activities is set out in (pa) to (pe). The regulated activities of agreeing to carry on each of these activities will, if carried on in relation to a life policy, also come within both designated investment business and insurance mediation activities. |
Note 2: |
For the purposes of the regulated activities of dealing in investments as principal (article 14) and dealing in investments as agent (article 21), the definition of contractually based investments [expanded in Table 3] excludes a funeral plan contract (article 87) and rights to or interests in funeral plan contracts. |
Note 3: |
(i) The regulated activities of managing investments (article 37) and safeguarding and administering investments (article 40) may apply in relation to any assets, in particular circumstances, if the assets being managed or safeguarded and administered include, or may include, any security or contractually based investment. |
Note 4: |
(j) For the purposes of the permission regime, the activity in (j)(ii) of advising on pension transfers and pension opt-outs is carried on in respect of the following specified investments: |
• unit (article 81); |
• stakeholder pension scheme (article 82); and |
• life policy (as defined in note 5); |
• rights to or interests in investments in so far as they relate to a unit, a stakeholder pension scheme or a life policy. |
Note 5: |
Article 4(2) of the Regulated Activities Order specifies the activities (m) to (p) for the purposes of section 22(1)(b) of the Act. That is, these activities will be regulated activities if carried on in relation to any property and are not expressed as relating to a specified investment. |
Note 5A: |
Where they are carried on in relation to a life policy, the activities listed as insurance mediation activities in (pa) to (pe) (as well as the regulated activity of agreeing to carry on those activities) are also designated investment business. |
Note 5B: |
Life policy is the term used in the Handbook to mean 'qualifying contract of insurance' (as defined in Article 3(1) of the Regulated Activities Order), and except in COB 3, AUTH App 1 and AUTH App 5 the term also includes a long-term care insurance contract which is a pure protection contract. |
Note 5C: |
Pure protection contract is the term used in the Handbook to mean a long-term insurance contract which is not a life policy. |
Note 5D: |
General insurance contract is the term used in the Handbook to mean contract of insurance within column 1 of Table 2. |
Note 5E: |
For the purposes of the permission regime, the activity in (pe)(ii) of advising on pension transfers and pension opt-outs is carried on in respect of the following specified investments: |
• life policy (explained in note 5A); |
• rights to or interests in investments in so far as they relate to a life policy. |
Note 6: |
• Section 315 of the Act (The Society: authorisation and permission) states that the Society of Lloyd's has permission to carry on the regulated activities referred to in that section, one of which is specified in article 58 of the Regulated Activities Order. This permission is unique to the Society of Lloyd's. |
Table 2: Contracts of insurance | |||
Contract of insurance (article 75 of the RAO) | |||
(a) general insurance contract (Part I of Schedule 1 to the Regulated Activities Order) | (b) long-term insurance contract (Part II of Schedule 1 to the Regulated Activities Order) | ||
1.1.3 Number | |||
(1) | 1 | Accident (paragraph 1) | life and annuity (paragraph I) |
(a) | 2 | Sickness (paragraph 2) | marriage and birth (paragraph II) |
(i) | 3 | Land vehicles (paragraph 3) | linked long-term (paragraph III) |
(ii) | 4 | Railway rolling stock (paragraph 4) | permanent health (paragraph IV) |
(iii) | 5 | Aircraft (paragraph 5) | tontines (paragraph V) |
(iv) | 6 | Ships (paragraph 6) | capital redemption (paragraph VI) |
(v) | 7 | Goods in transit (paragraph 7) | pension fund management (paragraph VII) |
(vi) | 8 | fire and natural forces (paragraph 8) | collective insurance (paragraph VIII) |
(vii) | 9 | damage to property (paragraph 9) | social insurance (paragraph IX) |
(viii) | 10 | motor vehicle liability (paragraph 10) | |
(ix) | 11 | aircraft liability (paragraph 11) | |
(x) | 12 | liability of ships (paragraph 12) | |
(xi) | 13 | general liability (paragraph 13) | |
(xii) | 14 | credit (paragraph 14) | |
(xiii) | 15 | suretyship (paragraph 15) | |
(xiv) | 16 | miscellaneous financial loss (paragraph 16) | |
(xv) | 17 | legal expenses (paragraph 17) | |
(xvi) | 18 | assistance (paragraph 18) | |
Notes to Table 2 | |||
Note 1: See IPRU(INS) Ann 10.2 Part II for the groups of classes of general insurance business from the Annex to the First non-Life Directive. | |||
Note 2: See IPRU(INS) 11.8 and the definition of ancillary risks in IPRU(INS) and AUTH 3.12.6 G to AUTH 3.12.12 G for guidance on the treatment of supplementary and ancillary provisions in relation to contracts of insurance. |
Table 3: Securities, contractually based investments and relevant investments [see notes 1 and 2 to Table 3] | ||
Security (article 3(1)) | Contractually based investment (article 3(1)) | Relevant investment (article 3(1)) |
share (article 76) debenture (article 77) government and public security (article 78) warrant (article 79) certificate representing certain security (article 80) unit (article 81) stakeholder pension scheme (article 82) rights to or interests in investments (article 89) in so far as they relate to any of the above categories of security |
option (article
83) For the purposes of the permission regime, option is subdivided into: • option (excluding a commodity option and an option on a commodity future); • commodity option and option on a commodity future. future (article 84) For the purposes of the permission regime, future is subdivided into: • future (excluding a commodity future and arolling spot forex contract); • commodity future; • rolling spot forex contract. contract for differences (article 85) For the purposes of the permission regime, contract for differences is subdivided into: • contract for differences (excluding a spread bet and a rolling spot forex contract); • spread bet; • rolling spot forex contract. life policy (but excluding a long-term care insurance contract which is a pure protection contract) [see note 5B to Table 1] funeral plan contract (article 87) [see note 1A to Table 1] rights to or interests in investments (article 89) in so far as they relate to any of the above categories of contractually based investment. |
contractually
based investment (article 3(1)) pure protection contract [see note 5C to Table 1] general insurance contract [see note 5D to Table 1] |
Notes to Table 3 | ||
Note 1:
1. Security, contractually based investment and relevant investment are not, in themselves, specified investments they are defined as including a number of specified investments as set out in Table 3. Relevant investments is the term that is used to cover contractually based investments together with rights under a general insurance contract and a pure protection contract. Note 2: (1) For the purposes of the regulated activities of dealing in investments as principal (article 14) and dealing in investments as agent (article 21), the definition of contractually based investments excludes a funeral plan contract (article 87) and rights to or interests in funeral plan contracts. |
AUTH 3
Applications
for Part IV permission
AUTH 3.1
Application and purpose
- 01/12/2004
Application
AUTH 3.1.1
See Notes
- 03/09/2001
Purpose
AUTH 3.1.2
See Notes
- 03/09/2001
AUTH 3.2
Introduction
- 01/12/2004
AUTH 3.2.1
See Notes
AUTH 3.2.2
See Notes
- 03/09/2001
AUTH 3.3
When is Part IV permission required and what does it contain?
- 01/12/2004
AUTH 3.3.1
See Notes
AUTH 3.3.2
See Notes
- 03/09/2001
AUTH 3.3.3
See Notes
- 03/09/2001
AUTH 3.3.4
See Notes
- 03/09/2001
AUTH 3.3.5
See Notes
- 03/09/2001
AUTH 3.4
Activities
- 01/12/2004
AUTH 3.4.1
See Notes
AUTH 3.4.2
See Notes
- 03/09/2001
AUTH 3.4.3
See Notes
- 03/09/2001
AUTH 3.5
Specified investments
- 01/12/2004
AUTH 3.5.1
See Notes
AUTH 3.6
Limitations
- 01/12/2004
AUTH 3.6.1
See Notes
- 03/09/2001
AUTH 3.6.2
See Notes
- 03/09/2001
AUTH 3.6.3
See Notes
- 18/10/2001
AUTH 3.6.4
See Notes
AUTH 3.6.5
See Notes
AUTH 3.6.6
See Notes
- 03/09/2001
AUTH 3.7
Requirements
- 01/12/2004
AUTH 3.7.1
See Notes
- 03/09/2001
AUTH 3.7.2
See Notes
- 03/09/2001
AUTH 3.7.3
See Notes
- 13/02/2004
AUTH 3.7.4
See Notes
- 21/02/2002
AUTH 3.7.5
See Notes
- 03/09/2001
AUTH 3.7.6
See Notes
- 03/09/2001
AUTH 3.7.7
See Notes
AUTH 3.7.8
See Notes
- 03/09/2001
AUTH 3.8
The threshold conditions and financial resources
- 01/12/2004
The threshold conditions
AUTH 3.8.1
See Notes
- 03/09/2001
AUTH 3.8.2
See Notes
- 19/01/2003
AUTH 3.8.3
See Notes
- 03/09/2001
Financial resources
AUTH 3.8.4
See Notes
- 31/12/2004
AUTH 3.8.5
See Notes
- 27/04/2002
AUTH 3.8.6
See Notes
- 31/12/2004
AUTH 3.8.7
See Notes
- 31/01/2005
- Past version of AUTH 3.8.7 before 31/01/2005
AUTH 3.8.8
See Notes
- 31/12/2004
AUTH 3.9
Procedures in relation to applications for Part IV permission
- 01/12/2004
Pre-application meetings
AUTH 3.9.1
See Notes
- 01/07/2003
AUTH 3.9.2
See Notes
- 03/09/2001
The application for permission
AUTH 3.9.3
See Notes
- 01/07/2003
AUTH 3.9.4
See Notes
- 01/07/2003
AUTH 3.9.5
See Notes
- 03/09/2001
Information to be supplied to the FSA
AUTH 3.9.6
See Notes
- 03/09/2001
AUTH 3.9.7
See Notes
- 03/09/2001
AUTH 3.9.8
See Notes
- 03/09/2001
AUTH 3.9.9
See Notes
- 03/09/2001
AUTH 3.9.10
See Notes
- 03/09/2001
AUTH 3.9.11
See Notes
- 03/09/2001
AUTH 3.9.12
See Notes
- 01/07/2003
AUTH 3.9.13
See Notes
- 03/09/2001
AUTH 3.9.14
See Notes
- 01/07/2003
AUTH 3.9.15
See Notes
- 03/09/2001
Reports from third parties
AUTH 3.9.16
See Notes
- 03/09/2001
AUTH 3.9.17
See Notes
- 03/09/2001
AUTH 3.9.18
See Notes
- 03/09/2001
AUTH 3.9.19
See Notes
- 31/12/2004
AUTH 3.9.20
See Notes
- 03/09/2001
Applications to other bodies
AUTH 3.9.21
See Notes
- 03/09/2001
Connected persons
AUTH 3.9.22
See Notes
- 03/09/2001
AUTH 3.9.23
See Notes
- 03/09/2001
AUTH 3.9.24
See Notes
- 03/09/2001
Commencing regulated activities
AUTH 3.9.25
See Notes
- 01/07/2003
When will the FSA grant an application for Part IV permission?
AUTH 3.9.26
See Notes
- 03/09/2001