Regulated Activities Order 2001 (as amended)

Question 1

What are “specified investments”?

Answer 1

1. They include investment instruments and rights to those instruments but exclude physical assets.
2. Provision of credit, regulated mortgages are also specified invest investments
3. After MiFID II, structure deposits and emission allowances has also come under this
4. These investments are regulated by the FCA.

Question 2

Explain the scope of regulated activities and investments under the Regulated Activities Order 2001 (RAO 2001)

Answer 2

1. Authorisation/ exemption is required if the activity is carried out in relation to one or more of the specified investments.
2. Examples of regulated activities are:
   A. Accepting deposits (banks do this)
   B. Issuing electronic money (PayPal)
   C. Selling/ managing contracts of insurance/ insurance policies as principal (directly).
   D. Dealing in, arranging deals in or managing investments
   E. Arranging a mortgage or other home finance transaction. (Helping)
   F. MTFs (trading with less strict rules)
   G. OTFs (for bonds and derivatives)