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41.—(1) There are excluded from article 40 any activities which a person carries on pursuant to arrangements which—
(a)are ones under which a qualifying custodian undertakes to the person to whom the assets belong a responsibility in respect of the assets which is no less onerous than the qualifying custodian would have if the qualifying custodian were safeguarding and administering the assets; and
(b)are operated by the qualifying custodian in the course of carrying on in the United Kingdom an activity of the kind specified by article 40.
(2) In paragraph (1), “qualifying custodian" means a person who is—
(a)an authorised person who has permission to carry on an activity of the kind specified by article 40, or
(b)an exempt person acting in the course of a business comprising a regulated activity in relation to which he is exempt.
42.—(1) There are excluded from article 40 any arrangements pursuant to which introductions are made by a person (“P") to a qualifying custodian with a view to the qualifying custodian providing in the United Kingdom a service comprising an activity of the kind specified by article 40, where the qualifying person (or other person who is to safeguard and administer the assets in question) is not connected with P.
(2) For the purposes of paragraph (1)—
(a)“qualifying custodian" has the meaning given by article 41(2); and
(b)a person is connected with P if either he is a member of the same group as P, or P is remunerated by him.
42A. A person does not carry on an activity of the kind specified by article 40 if the person carries on the activity in relation to—
(a)a UCITS, and the person has a Part 4A permission to carry on the activity specified in article 51ZB in respect of that UCITS; or
(b)an AIF, and the person has a Part 4A permission to carry on the activity specified in article 51ZD in respect of that AIF.]
Textual Amendments
F1Art. 42A inserted (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 2 para. 1(10)
Modifications etc. (not altering text)
C1Art. 42A applied (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), regs. 1, 76(6)
43. The following activities do not constitute the administration of assets for the purposes of article 40—
(a)providing information as to the number of units or the value of any assets safeguarded;
(b)converting currency;
(c)receiving documents relating to an investment solely for the purpose of onward transmission to, from or at the direction of the person to whom the investment belongs.
44. Article 40 is also subject to the exclusions in articles 66 (trustees etc.), 67 (profession or non-investment business), 68 (sale of goods and supply of services), 69 (groups and joint enterprises)[F2, 71 (employee share schemes)][F3, 72A (information society services)[F4, 72AA (managers of UCITS and AIFs) [F5and 72C (provisions of information about contracts of insurance on an incidental basis)] [F5, 72C (provisions of information about contracts of insurance on an incidental basis) and 72H (insolvency practitioners)]]].
Textual Amendments
F2Words in art. 44 substituted (21.8.2002) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2002 (S.I. 2002/1776), arts. 1, 3(8)
F3Words in art. 44 substituted (31.10.2004 for specified purposes, 14.1.2005 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2003 (S.I. 2003/1476), arts. 1(3), 8
F4Words in art. 44 substituted (22.7.2013) by The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 2 para. 1(9)