PART II SPECIFIED ACTIVITIES

Chapter VDealing in Investments as Agent

Exclusions

Risk management23

1

A person (“B") does not carry on an activity of the kind specified by article 21 by entering as agent for a relevant person 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 person" means—

a

a member of the same group as B; or

b

where B and another person are, or propose to become, participators in a joint enterprise, that other person;

and “relevant business" means a business carried on by a relevant person.