COLL S1.6 Arrangements Entered into for Commercial Purposes Related to Existing Businesses

(1) An arrangement is not a scheme if each of the participants in the arrangement—
(a) conducts a business activity other than an excluded activity; and
(b) enters into the arrangement for commercial purposes related to the business activity.
(2) However, subrule (1) does not apply if the participant will conduct the business activity only because the participant is a participant in the arrangement.
(3) In this rule:

excluded activity means regulated activities of any of the following kinds:
(a) dealing in investments;
(b) arranging deals in investments;
(c) providing custody services;
(d) arranging the provision of custody services;
(e) managing investments;
(f) advising on investments;
(g) providing credit facilities;
(h) arranging credit facilities;
(i) operating collective investment schemes.

Note Regulated activity and the regulated activities mentioned in para (a) to (i) are defined in the glossary.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)