40.—(1) The activity consisting of both—
(a)the safeguarding of assets belonging to another, and
(b)the administration of those assets,
or arranging for one or more other persons to carry on that activity, is a specified kind of activity if the condition in sub-paragraph (a) or (b) of paragraph (2) is met.
(2) The condition is that—
(a)the assets consist of or include any investment which is a security or a contractually based investment; or
(b)the arrangements for their safeguarding and administration are such that the assets may consist of or include such investments, and either the assets have at any time since 1st June 1997 done so, or the arrangements have at any time (whether before or after that date) been held out as ones under which such investments would be safeguarded and administered.
(3) For the purposes of this article—
(a)it is immaterial that title to the assets safeguarded and administered is held in uncertificated form;
(b)it is immaterial that the assets safeguarded and administered may be transferred to another person, subject to a commitment by the person safeguarding and administering them, or arranging for their safeguarding and administration, that they will be replaced by equivalent assets at some future date or when so requested by the person to whom they belong.