Part 2: Specified Activities

Subject to any Rules, an activity is a Specified Activity for the purposes of Article 23(1)(A) of these Regulations if it falls within one of the descriptions set out in the following paragraphs and does not fall within the scope of any of the exclusions set out in that paragraph.

1. Deposit Taking

1.1 Activity

Deposit Taking is the activity of accepting money received as a Deposit if:
(1) that money is lent to others; or
(2) any other activity of the Person accepting the deposit is financed wholly, or to a material extent, out of the capital of or interest on that money.
1.2 Exclusions

There are no specific exclusions for this activity.

2. Effecting a Contract of Insurance

2.1 Activity

Effecting a Contract of Insurance is the activity of effecting a Contract of Insurance as Principal.
2.2 Exclusions

There are no specific exclusions for this activity.

3. Carrying out a Contract of Insurance

3.1 Activity

Carrying out a Contract of Insurance is the activity of carrying out a Contract of Insurance as Principal.
3.2 Exclusions

There are no specific exclusions for this activity.

4. Dealing in Investments

4.1 Activity

Dealing in Investments is:
(1) the activity of buying, selling, subscribing for or underwriting Investments or agreeing to do so, either as a principal or as an agent; or
(2) the activity of buying, selling, underwriting or entering into a Contract of Insurance as agent or agreeing to do so.
4.2 Exclusions

The following activities are excluded from the Specified Activity of Dealing in Investments:
(1) the issue by a body corporate of its own Shares or Debentures or of its own Share Warrants or Debenture Warrants; and
(2) the acceptance by a Person of an Instrument Creating or Acknowledging Indebtedness in respect of any loan, credit, guarantee or other similar financial accommodation or assurance which that Person has made, granted or provided.

5. Arranging Deals in Investments

5.1 Activity

Arranging Deals in Investments is the activity of making, or agreeing to make arrangements with a view to another Person buying, selling, subscribing for or underwriting an Investment or Contract of Insurance.
5.2 Exclusions
(1) The making by a Person of arrangements with a view to the following are excluded from the Specified Activity of Arranging Deals in Investments:
(A) a transaction, contract or facility to which that Person is to be a party either as principal or as agent for another Person;
(B) the issue by a body corporate of its own Shares or Debentures or of its own Share Warrants or Debenture Warrants;
(C) the acceptance by a Person of an Instrument Creating or Acknowledging Indebtedness in respect of any loan, credit, guarantee or other similar financial accommodation or assurance which that Person has made, granted or provided; and
(D) the provision of finance to enable a Person to buy, sell, subscribe for or underwrite Investments.
(2) A Person does not carry on the Specified Activity of Arranging Deals in Investments merely by providing the means by which one party to a transaction is able to communicate with other parties to such a transaction.

6. Providing Credit Facilities

6.1 Activity

Providing Credit Facilities is the activity of providing a Credit Facility to another Person.
6.2 Exclusions

A Person does not carry on the Specified Activity of Providing Credit Facilities if the Credit Facility is to be provided by a Regulated Firm in the course of carrying on once or more of the following activities:
(1) Dealing in Investments;
(2) Arranging Deals in Investments;
(3) Managing Investments;
(4) Operating a Collective Investment Fund; or
(5) Provision of Custody Services.

7. Arranging Credit Facilities

7.1 Activity

Arranging Credit Facilities is the activity of arranging for the Provision of a Credit Facility by one or more Persons.
7.2 Exclusions

A Person will not carry on the Specified Activity of Arranging Credit Facilities if:
(1) he is to be a party to the Provision of Credit Facilities in question; or
(2) he merely provides the means by which a Person providing a Credit Facility communicates with the Person to whom the Credit Facility is or is to be provided.

8. Providing Custody Services

8.1 Activity
(1) Providing Custody Services is the activity of both safeguarding and administering assets belonging to another which consist of or include Investments or Long Term Insurance Contracts or agreeing to do so.
(2) For the purposes of paragraph (1) the following activities do not constitute administering assets:
(A) providing information as to the number of units or the value of any assets safeguarded;
(B) converting currency; or
(C) transmitting documents.
8.2 Exclusions

A Person does not carry out the Specified Activity of Providing Custody Services if that Person does so under a delegation arrangement with an Authorised Firm which has permission to carry on the Specified Activity of Providing Custody Services, provided that the Authorised Firm accepts a responsibility for the assets which is no less onerous than it would have if it were doing the safeguarding and administration itself.

9. Arranging the Provision of Custody Services

9.1 Activity

Arranging the Provision of Custody Services is the activity of arranging for one or more Persons to Provide Custody Services.
9.2 Exclusions

A Person will not carry on the Specified Activity of Arranging the Provision of Custody if:
(1) he is to provide custody services himself; or
(2) he merely provides the means by which the provider of custody communicates with the Person to whom Custody Services are or are to be provided.

10. Managing Investments

10.1 Activity

Managing Investments is the activity of managing, or agreeing to manage, assets belonging to another Person where:
(1) the assets consist of or include Investments or Long Term Insurance Contracts; and
(2) the arrangements for their management are such that the assets may consist of or include Investments at the discretion of the Person managing or offering or agreeing to manage them.
10.2 Exclusions

There are no specific exclusions for this activity.

11. Advising on Investments

11.1 Activity

Advising on Investments is the activity of giving or agreeing to give advice to a Person on the merits of
(1) buying, selling, subscribing for or underwriting a particular Investment or Contract of Insurance; or
(2) exercising any right conferred by an Investment to acquire, dispose of, underwrite or convert an Investment or Contract of Insurance.
11.2 Exclusions

The giving of advice in a newspaper, journal, magazine or other periodical publication is excluded from the Specified Activity of Advising on Investments provided that the principal purpose of the publication or service taken as a whole (including any advertisements or other promotional material contained in it) is not Advising on Investments or leading or enabling a Person to Deal in Investments, Effect Contracts of Insurance or Carry Out Contracts of Insurance.

12. Operating a Collective Investment Fund

12.1 Activity
(1) Operating a Collective Investment Fund is the activity of establishing, operating or winding-up a Collective Investment Fund.
(2) For the purposes of paragraph (1) a Person operates a Collective Investment Fund if he:
(A) acts in the capacity of trustee of a Collective Investment Fund that takes the form of a trust;
(B) acts as transfer or registration agent for the Collective Investment Fund, or provides valuation or accounting services for the Collective Investment Fund; or
(C) otherwise has responsibility for the day to day administration of those parts of the business of the Collective Investment Fund that do not constitute Managing Investments.
12.2 Exclusions

There are no specific exclusions for this Activity.
Amended by QFC Reg 2010-2 (as from 9th December 2010)