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SCHEDULE 1U.K. 

PART IIU.K.Controlled Investments

12.  A deposit.U.K.

13.  Rights under a contract of insurance.U.K.

14.—(1) Shares or stock in the share capital of—U.K.

(a)any body corporate (wherever incorporated);

(b)any unincorporated body constituted under the law of a country or territory outside the United Kingdom.

(2) Sub-paragraph (1) includes—

(a)any shares of a class defined as deferred shares for the purposes of section 119 of the Building Societies Act 1986 M1;

(b)any transferable shares in a body incorporated under the law of, or any part of, the United Kingdom relating to [F1co-operative and community benefit societies,] industrial and provident societies or credit unions F2...

(3) But subject to sub-paragraph (2) there are excluded from sub-paragraph (1) shares or stock in the share capital of—

(a)an open-ended investment company;

(b)a building society incorporated under the law of, or any part of, the United Kingdom;

(c)any body incorporated under the law of, or any part of, the United Kingdom relating to [F3co-operative and community benefit societies,] industrial and provident societies or credit unions;

F4(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Marginal Citations

Instruments creating or acknowledging indebtednessU.K.

15.—(1) Subject to sub-paragraph (2), such of the following as do not fall within [F5paragraph F6... 16]—

(a)debentures;

(b)debenture stock;

(c)loan stock;

(d)bonds;

(e)certificates of deposit;

(f)any other instrument creating or acknowledging a present or future indebtedness.

(2) If and to the extent that they would otherwise fall within sub-paragraph (1), there are excluded from that sub-paragraph—

(a)any instrument acknowledging or creating indebtedness for, or for money borrowed to defray, the consideration payable under a contract for the supply of goods or services;

(b)a cheque or other bill of exchange, a banker's draft or a letter of credit (but not a bill of exchange accepted by a banker);

(c)a banknote, a statement showing a balance on a current, deposit or saving account, a lease or other disposition of property, a heritable security; and

(d)a contract of insurance.

F7(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An instrument excluded from sub-paragraph (1) of paragraph 16 by paragraph 16(2)(b) is not thereby to be taken to fall within sub-paragraph (1) of this paragraph.

Textual Amendments

[F8Alternative finance investment bondsU.K.

15A.—(1) Rights under an alternative finance investment bond, to the extent that they do not fall within paragraph [F915 or] 16.

(2) For the purposes of this paragraph, arrangements constitute an alternative finance investment bond if—

(a)the arrangements provide for a person (“the bond-holder”) to pay a sum of money (“the capital”) to another (“the bond-issuer”);

(b)the arrangements identify assets, or a class of assets, which the bond-issuer will acquire for the purpose of generating income or gains directly or indirectly (“the bond assets”);

(c)the arrangements specify a period at the end of which they cease to have effect (“the bond term”);

(d)the bond-issuer undertakes under the arrangements—

(i)to make a repayment in respect of the capital (“the redemption payment”) to the bond-holder during or at the end of the bond term (whether or not in instalments); and

(ii)to pay to the bond-holder other payments on one or more occasions during or at the end of the bond term (“the additional payments”);

(e)the amount of the additional payments does not exceed an amount which would, at the time at which the bond is issued, be a reasonable commercial return on a loan of the capital; and

[F10(f)the arrangements are—

(i)a security that is admitted to the official list in accordance with Part 6 of the Act,

(ii)a security that is admitted to an official list in the EEA (in accordance with the provisions of Directive 2001/34/EC of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities) and has been so admitted since before IP completion day,

(iii)a security that is admitted to trading on a recognised investment exchange or a UK trading venue, or

(iv)a security that is admitted to trading on an EU trading venue and has been so admitted since before IP completion day.]

(3) For the purposes of sub-paragraph (2)—

(a)the bond-issuer may acquire the bond assets before or after the arrangements take effect;

(b)the bond assets may be property of any kind, including rights in relation to property owned by someone other than the bond-issuer;

(c)the identification of the bond assets mentioned in sub-paragraph (2)(b) and the undertakings mentioned in sub-paragraph (2)(d) may (but need not) be described as, or accompanied by a document described as, a declaration of trust;

(d)the reference to a period in sub-paragraph (2)(c) includes any period specified to end upon the redemption of the bond by the bond-issuer;

(e)the bond-holder may (but need not) be entitled under the arrangements to terminate them, or participate in terminating them, before the end of the bond term;

(f)the amount of the additional payments may be—

(i)fixed at the beginning of the bond term;

(ii)determined wholly or partly by reference to the value of or income generated by the bond assets; or

(iii)determined in some other way;

(g)if the amount of the additional payments is not fixed at the beginning of the bond term, the reference in sub-paragraph (2)(e) to the amount of the additional payments is a reference to the maximum amount of the additional payments;

(h)the amount of the redemption payment may (but need not) be subject to reduction in the event of a fall in the value of the bond assets or in the rate of income generated by them; and

(i)entitlement to the redemption payment may (but need not) be capable of being satisfied (whether or not at the option of the bond-issuer or the bond-holder) by the issue or transfer of shares or other securities.

(4) An instrument excluded from sub-paragraph (1) of paragraph 16 by sub-paragraph (2)(b) of that paragraph is not thereby taken to fall within sub-paragraph (1) of this paragraph. ]

Textual Amendments

Government and public securitiesU.K.

16.—(1) Subject to sub-paragraph (2), loan stock, bonds and other instruments—

(a)creating or acknowledging indebtedness; and

(b)issued by or on behalf of a government, local authority (whether in the United Kingdom or elsewhere) or international organisation.

(2) [F11Subject to sub-paragraph (3),] there are excluded from sub-paragraph (1)—

(a)so far as applicable, the instruments mentioned in paragraph 15(2)(a) to (d);

(b)any instrument creating or acknowledging indebtedness in respect of—

(i)money received by the Director of Savings as deposits or otherwise in connection with the business of the National Savings Bank;

(ii)money raised under the National Loans Act 1968 M2 under the auspices of the Director of Savings or treated as so raised by virtue of section 11(3) of the National Debt Act 1972 M3.

[F12(3) Sub-paragraph (2)(a) does not exclude an instrument which meets the requirements set out in paragraphs (a) to (e) of paragraph 15A(2).]

Textual Amendments

Marginal Citations

Instruments giving entitlements to investmentsU.K.

17.—(1) Warrants and other instruments entitling the holder to subscribe for any investment falling within paragraph 14, 15 or 16.

(2) It is immaterial whether the investment to which the entitlement relates is in existence or identifiable.

(3) An investment falling within this paragraph shall not be regarded as falling within paragraph 21, 22 or 23.

Certificates representing certain securitiesU.K.

18.—(1) Subject to sub-paragraph (2), certificates or other instruments which confer contractual or property rights (other than rights consisting of an investment of the kind specified by paragraph 21)—

(a)in respect of any investment of the kind specified by any of paragraphs 14 to 17 being an investment held by a person other than the person on whom the rights are conferred by the certificate or instrument; and

(b)the transfer of which may be effected without the consent of that person.

(2) There is excluded from sub-paragraph (1) any instrument which confers rights in respect of two or more investments issued by different persons, or in respect of two or more different investments of the kind specified by paragraph 16 and issued by the same person.

Units in a collective investment schemeU.K.

19.  Units in a collective investment scheme.

[F13Rights under a pension schemeU.K.

20.—(1) Rights under a stakeholder pension scheme.

(2) Rights under a personal pension scheme.

(3) ”Stakeholder pension scheme” and “personal pension scheme” have the meanings given by article 72(4).]

Textual Amendments

OptionsU.K.

21.—[F14(1)] 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; F15...

(d)an option to acquire or dispose of an investment falling within this paragraph by virtue of sub-paragraph (a), (b) or (c)[F16;

(e)subject to sub-paragraph (4), an option to acquire or dispose of an option to which [F17paragraph 5, 6, 7 or 10 of Part 1 of Schedule 2 (read with Articles 5, 6, 7, and 8 of the Commission Regulation) applies]]

[F18(2) 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 [F19Part 1 of Schedule 2] [F20(read with Articles 5 and 6 of the Commission Regulation)] applies, or

(ii)which in accordance with Article [F217] 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 [F22Part 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 [F23Part 1 of Schedule 2] (read with [F24Articles 7 and 8 of] the Commission Regulation) applies.

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

[F25(a)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.]

F26(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F14Sch. 1 para. 21 renumbered as Sch. 1 para. 21(1) (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(3)(a)

F15Word in Sch. 1 para. 21(1)(c) omitted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(3)(b)(i)

F16Sch. 1 para. 21(1)(e) and semi-colon inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(3)(b)(ii)

F18Sch. 1 para. 21(2)-(5) inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(3)(c)

F20Words in Sch. 1 para. 21(2)(d)(i) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(g)(ii)(aa)

F21Word in Sch. 1 para. 21(2)(d)(ii) substituted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(g)(ii)(bb)

F24Words in Sch. 1 para. 21(3)(c) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(g)(iii)

FuturesU.K.

22.—(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.

[F27(1A) 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 [F28Part 1 of Schedule 2] [F29(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 [F307] 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 [F31Part 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 [F32Part 1 of Schedule 2] (read with [F33Articles 7 and 8 of] the Commission Regulation) applies.

[F34(1CA) Subject to sub-paragraph (1D), any other derivative contract, relating to currencies to which paragraph 4 of [F35Part 1 of Schedule 2] read with Article 10 of the Commission Regulation applies.]

(1D) Sub-paragraphs (1A), (1B)[F36, (1C) and (1CA)] only apply to futures[F37, forwards or derivative contacts] in relation to which—

[F38(a)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.]

F39(1E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(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.

Textual Amendments

F27Sch. 1 para. 22(1A)-(1E) inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(4)

F29Words in Sch. 1 para. 22(1A)(d) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(h)(i)

F30Word in Sch. 1 para. 22(1B)(d) substituted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(h)(ii)

F33Words in Sch. 1 para. 22(1C)(c) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(h)(iii)

F34Sch. 1 para. 22(1CA) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(h)(iv)

F36Words in Sch. 1 para. 22(1D) substituted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(h)(v)(aa)

F37Words in Sch. 1 para. 22(1D) substituted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(h)(v)(bb)

Contracts for differences etc.U.K.

23.—(1) Subject to sub-paragraph (2), rights under—

(a)a contract for differences; or

(b)any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in—

(i)the value or price of property of any description;

(ii)an index or other factor designated for that purpose in the contract.

(2) There are excluded from sub-paragraph (1)—

(a)rights under a contract if the parties intend that the profit is to be secured or the loss is to be avoided by one or more of the parties taking delivery of any property to which the contract relates;

(b)rights under a contract under which money is received by way of deposit on terms that any interest or other return to be paid on the sum deposited will be calculated by reference to fluctuations in an index or other factor;

(c)rights under any contract under which—

(i)money is received by the Director of Savings as deposits or otherwise in connection with the business of the National Savings Bank; or

(ii)money is raised under the National Loans Act 1968 under the auspices of the Director of Savings or treated as so raised by virtue of section 11(3) of the National Debt Act 1972;

(d)rights under a qualifying contract of insurance.

[F40(3) Subject to sub-paragraph (4), derivative instruments for the transfer of credit risk—

(a)to which neither paragraph 21 nor sub-paragraph (1) applies; and

(b)to which paragraph 8 of [F41Part 1 of Schedule 2] applies.

(4) Sub-paragraph (3) only applies to derivatives in relation to which—

[F42(a)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.]

[F43(4A) Subject to sub-paragraph (4B), a derivative contract of a binary or other fixed outcomes nature—

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

(b)which is settled in cash; and

(c)which is a financial instrument to which paragraph 4, 5, 6, 7 or 10 of [F44Part 1 of Schedule 2] read with Articles 5 to 8 and 10 of the Commission Regulation applies.

(4B) Sub-paragraph (4A) only applies to derivatives in relation to which—

[F45(a)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.]

(e)a person is carrying on the controlled activity referred to in paragraph 4(2).]

F46(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F40Sch. 1 para. 23(3)-(5) inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(5)

F43Sch. 1 para. 23(4A)(4B) inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(i)(ii)

[F47Emission allowancesU.K.

23A.—[F48(1) Subject to sub-paragraph (2)—

(a)emission allowances consisting of any units recognised for compliance (by an EEA State) with the requirements of the emission allowance trading directive; and

(b)allowances created under article 18 of the Greenhouse Gas Emissions Trading Scheme Order 2020 and transferable in accordance with that order.]

(2) Sub-paragraph (1) only applies to emission allowances in relation to which—

[F49(a)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.]]

Textual Amendments

F47Sch. 1 para. 23A inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(j)

Lloyd's syndicate capacity and syndicate membershipU.K.

24.—(1) The underwriting capacity of a Lloyd's syndicate.

(2) A person's membership (or prospective membership) of a Lloyd's syndicate.

Funeral plan contractsU.K.

25.  Rights under a qualifying funeral plan contract.

Agreements for qualifying creditU.K.

26.  Rights under an agreement for qualifying credit.

[F50Regulated home reversion plansU.K.

26A.  Rights under a regulated home reversion plan.

Textual Amendments

F50Sch. 1 paras. 26A, 26B inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(6)(a)

Regulated home purchase plansU.K.

26B.  Rights under a regulated home purchase plan.]

Textual Amendments

F50Sch. 1 paras. 26A, 26B inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(6)(a)

[F51Regulated sale and rent back agreementU.K.

26C.  Rights under a regulated sale and rent back agreement.]

Textual Amendments

F51Sch. 1 para. 26C inserted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(5)(a)

[F52Relevant credit agreementsU.K.

26D.  Rights under a relevant credit agreement

Textual Amendments

F52Sch. 1 paras. 26D, 26E inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(d)

Consumer hire agreementsU.K.

26E.  Rights under a consumer hire agreement]

Textual Amendments

F52Sch. 1 paras. 26D, 26E inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(d)

[F53Qualifying cryptoassetU.K.

26F.—(1)  Subject to sub-paragraph (3), a “qualifying cryptoasset” is any cryptoasset which is—

(a)fungible; and

(b)transferable.

(2)  For the purposes of sub-paragraph (1)(b), the circumstances in which a cryptoasset is to be treated as “transferable” include where—

(a)it confers transferable rights; or

(b)a communication made in relation to the cryptoasset describes it as being transferable or conferring transferable rights.

(3) A cryptoasset does not fall within sub-paragraph (1) if it is—

(a)a controlled investment falling within any of paragraphs 12 to 26E or, so far as relevant to any such investment, paragraph 27;

(b)electronic money;

(c)fiat currency;

(d)digitally issued fiat currency; or

(e)a cryptoasset that—

(i)cannot be transferred or sold in exchange for money or other cryptoassets, except by way of redemption with the issuer; and

(ii)can only be used in a limited way and meets one of the following conditions—

(aa)it allows the holder to acquire goods or services only from the issuer;

(ab)it is issued by a professional issuer and allows the holder to acquire goods or services only within a limited network of service providers which have direct commercial agreements with the issuer; or

(ac)it may be used only to acquire a very limited range of goods or services.

(4) In this paragraph—

“cryptoasset” means any cryptographically secured digital representation of value or contractual rights that—

(a)

can be transferred, stored or traded electronically, and

(b)

uses technology supporting the recording or storage of data (which may include distributed ledger technology);

“digitally issued fiat currency” means fiat currency issued in digital form;

“electronic money” has the meaning given by regulation 2(1) (interpretation) of the Electronic Money Regulations 2011.]

Textual Amendments

F53Sch. 1 para. 26F inserted (8.6.2023 for specified purposes, 7.10.2023 in so far as not already in force) by The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 (S.I. 2023/612), arts. 1(2), 9 (with art. 11)

Rights to or interests in investmentsU.K.

27.—(1) Subject to sub-paragraphs (2) and (3), any right to or interest in anything which is specified by any other provision of this Part of this Schedule (other than [F54paragraph 26, [F5526A, 26B or 26C]]).

(2) Sub-paragraph (1) does not apply to interests under the trusts of an occupational pension scheme.

(2A) Sub-paragraph (1) does not apply to any right or interest acquired as a result of entering into a funeral plan contract (and for this purpose a “funeral plan contract” is a contract of a kind described in paragraph 9(2)(a) and (b)).

(3) Sub-paragraph (1) does not apply to anything which falls within any other provision of this Part of this Schedule.

Textual Amendments

F54Words in Sch. 1 para. 27(1) substituted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(6)(b)

F55Words in Sch. 1 para. 27(1) substituted (1.7.2009 for specified purposes, 30.6.2010 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(5)(b)

InterpretationU.K.

28.  In this Schedule—

[F56“AIFM” has the meaning given in the Regulated Activities Order;]

[F57“agreement provider” has the meaning given in paragraph (3) of article 63J of the Regulated Activities Order, read with paragraphs (6) and (7) of that article;

“agreement seller” has the meaning given in article 63J(3) of the Regulated Activities Order]

[F58“borrower” has the meaning given by article 60L of the Regulated Activities Order;]

“buying” includes acquiring for valuable consideration;

[F59“Commission Regulation” F60... [F60has the meaning given in the Regulated Activities Order] ;]

[F58“consumer hire agreement” has the meaning given by article 60N of the Regulated Activities Order;]

“contract of insurance” has the meaning given in the Regulated Activities Order;

“contractually based investment” means—

(a)

rights under a qualifying contract of insurance;

(b)

any investment of the kind specified by any of paragraphs 21, 22, 23 and 25;

(c)

any investment of the kind specified by paragraph 27 so far as relevant to an investment falling within (a) or (b);

F61...

[F62“EU trading venue" has the meaning given by Article 2.1.16B of the markets in financial instruments regulation;]

[F58“hirer” has the meaning given by article 60N of the Regulated Activities Order;]

[F63“home purchase provider” and “home purchaser” have the meanings given in article 63F(3) of the Regulated Activities Order;]

[F59“investment firm” has the meaning given in the Regulated Activities Order;

“investment services and activities” has the meaning given in the Regulated Activities Order;]

[F58“lender” has the meaning given by article 60L of the Regulated Activities Order;]

[F59“management company” has the meaning given in the Regulated Activities Order;

“market operator” has the meaning given in the Regulated Activities Order;

[F56“markets in financial instruments directive” means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (recast);]

“MiFID instrument” has the meaning given in article 25D(2) of the Regulated Activities Order;

“multilateral trading facility” has the meaning given in the Regulated Activities Order;]

[F56“non-equity MiFID instrument” has the meaning given in article 25DA of the Regulated Activities Order;]

[F64“occupational pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993 but with paragraph (b) of the definition omitted;]

[F56“organised trading facility” has the meaning given in the Regulated Activities Order;]

[F65“plan provider” has the meaning given by paragraph (3) of article 63B of the Regulated Activities Order, read with paragraphs (7) and (8) of that article;]

“property” includes currency of the United Kingdom or any other country or territory;

[F62“qualifying credit institution” has the meaning given in the Regulated Activities Order;]

“qualifying funeral plan contract” has the meaning given by paragraph 9;

[F58“regulated consumer hire agreement” has the meaning given by article 60N of the Regulated Activities Order;]

[F58“regulated credit agreement” has the meaning given by article 60B of the Regulated Activities Order;]

[F66“regulated home purchase plan” has the meaning given in article 63F(3) of the Regulated Activities Order;

“regulated home reversion plan” and “reversion seller” have the meanings given in article 63B(3) of the Regulated Activities Order;]

[F67“regulated sale and rent back agreement” has the meaning given in article 63J(3) of the Regulated Activities Order;]

F68...

[F68“relevant credit agreement” means a credit agreement (within the meaning given by article 60B of the Regulated Activities Order) other than—

(a)

a regulated mortgage contract or a regulated home purchase plan (within the meaning of that Order); or

(b)

a buy-to-let mortgage contract as defined in article 4 of the Mortgage Credit Directive Order 2015;]

[F58“relevant recipient of credit” has the meaning given by article 60L of the Regulated Activities Order.]

“security” means a controlled investment falling within any of paragraphs 14 to 20 [F69or 23A] or, so far as relevant to any such investment, paragraph 27;

“selling”, in relation to any investment, includes disposing of the investment for valuable consideration, and for these purposes “disposing” includes—

(a)

in the case of an investment consisting of rights under a contract—

(i)

surrendering, assigning or converting those rights; or

(ii)

assuming the corresponding liabilities under the contract;

(b)

in the case of an investment consisting of rights under other arrangements, assuming the corresponding liabilities under the arrangements; and

(c)

in the case of any other investment, issuing or creating the investment or granting the rights or interests of which it consists;

“syndicate” has the meaning given in the Regulated Activities Order.

[F62“UK trading venue” has the meaning given by Article 2.1.16 of the markets in financial instruments regulation.]

Textual Amendments

F56Words in Sch. 1 para. 28 inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(k)(i)

F57Words in Sch. 1 para. 28 inserted (1.7.2009 for specified purposes, 30.6.2010 so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(5)(c)(i)

F58Words in Sch. 1 para. 28 inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 17(6)(e)

F59Words in Sch. 1 para. 28 inserted (1.4.2007 for specified purposes, 1.11.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No. 3) Order 2006 (S.I. 2006/3384), arts. 1(2), 40(6)

F60Words in Sch. 1 para. 28 substituted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(k)(ii)

F63Words in Sch. 1 para. 28 inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(6)(c)(i)

F64Words in Sch. 1 para. 28 substituted (6.4.2007) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2006 (S.I. 2006/1969), arts. 1(2)(b), 12(4)

F65Words in Sch. 1 para. 28 inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(6)(c)(ii)

F66Words in Sch. 1 para. 28 inserted (6.11.2006 for specified purposes, 6.4.2007 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2006 (S.I. 2006/2383), arts. 1(2), 35(6)(c)(iii)

F67Words in Sch. 1 para. 28 inserted (1.7.2009 for specified purposes, 30.6.2010 so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2009 (S.I. 2009/1342), arts. 1(2), 30(5)(c)(ii)

F68Words in Sch. 1 para. 28 substituted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 12(3) (with Pt. 4)

F69Words in Sch. 1 para. 28 inserted (1.4.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (S.I. 2017/488), art. 1(2), Sch. para. 9(10)(k)(iii)