PART II SPECIFIED ACTIVITIES
Chapter IVDealing in Investments as Principal
Exclusions
Risk management19
1
A person (“B") does not carry on an activity of the kind specified by article 14 by entering as principal into a transaction with another person (“C") if—
a
the transaction relates to investments of the kind specified by any of articles 83 to 85 (or article 89 so far as relevant to any of those articles);
b
neither B nor C is an individual;
c
the sole or main purpose for which B enters into the transaction (either by itself or in combination with other such transactions) is that of limiting the extent to which a relevant business will be affected by any identifiable risk arising otherwise than as a result of the carrying on of a regulated activity; and
d
the relevant business consists mainly of activities other than—
i
regulated activities; or
ii
activities which would be regulated activities but for any exclusion made by this Part.
2
In paragraph (1), “relevant business" means a business carried on by—
a
B;
b
a member of the same group as B; or
c
where B and another person are, or propose to become, participators in a joint enterprise, that other person.