SCHEDULE 1 

PART IIControlled Investments

Futures22

1

Subject to sub-paragraph (2), rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made.

F101A

Subject to sub-paragraph (1D), futures—

a

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

b

which relate to commodities;

c

which may be settled physically; and

d

to which paragraph 5 or 6 of F12Part 1 of Schedule 2F6(read with Articles 5 and 6 of the Commission Regulation) applies.

1B

Subject to sub-paragraph (1D), futures and forwards—

a

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

b

which relate to commodities;

c

which may be settled physically;

d

which in accordance with Article F37 of the Commission Regulation are to be considered as having the characteristics of other derivative financial instruments and not being for commercial purposes; and

e

to which paragraph 7 of F8Part 1 of Schedule 2 applies.

1C

Subject to sub-paragraph (1D), futures—

a

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

b

which may be settled physically; and

c

to which paragraph 10 of F1Part 1 of Schedule 2 (read with F13Articles 7 and 8 of the Commission Regulation) applies.

F111CA

Subject to sub-paragraph (1D), any other derivative contract, relating to currencies to which paragraph 4 of F5Part 1 of Schedule 2 read with Article 10 of the Commission Regulation applies.

1D

Sub-paragraphs (1A), (1B)F9, (1C) and (1CA) only apply to futuresF7, forwards or derivative contacts in relation to which—

F2a

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.

F41E

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2

There are excluded from sub-paragraph (1) rights under any contract which is made for commercial and not investment purposes.

3

For the purposes of sub-paragraph (2), in considering whether a contract is to be regarded as made for investment purposes or for commercial purposes, the indicators set out in article 84 of the Regulated Activities Order shall be applied in the same way as they are applied for the purposes of that article.