SCHEDULE 1 

PART IIControlled Investments

Options21

F21

Options to acquire or dispose of—

a

a security or contractually based investment (other than one of a kind specified in this paragraph);

b

currency of the United Kingdom or of any other country or territory;

c

palladium, platinum, gold or silver; F3...

d

an option to acquire or dispose of an investment falling within this paragraph by virtue of sub-paragraph (a), (b) or (c)F4;

e

subject to sub-paragraph (4), an option to acquire or dispose of an option to which F8paragraph 5, 6, 7 or 10 of Part 1 of Schedule 2 (read with Articles 5, 6, 7, and 8 of the Commission Regulation) applies

F12

Subject to sub-paragraph (4), options—

a

to which sub-paragraph (1) does not apply;

b

which relate to commodities;

c

which may be settled physically; and

d

either—

i

to which paragraph 5 or 6 of F11Part 1 of Schedule 2F5(read with Articles 5 and 6 of the Commission Regulation) applies, or

ii

which in accordance with Article F67 of the Commission Regulation are to be considered as having the characteristics of other derivative financial instruments and not being for commercial purposes, and to which paragraph 7 of F12Part 1 of that Schedule applies.

3

Subject to sub-paragraph (4), options—

a

to which sub-paragraph (1) does not apply;

b

which may be settled physically; and

c

to which paragraph 10 of F10Part 1 of Schedule 2 (read with F7Articles 7 and 8 of the Commission Regulation) applies.

4

Sub-paragraphs (1)(e), (2) and (3) only apply to options in relation to which—

F13a

an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis;

b

a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule;

c

a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule;

d

a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

F95

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