AUTH 3.5 Specified investments

The specified investments for which an applicant may apply for Part IV permission are listed in AUTH 2 Annex 2 G. In general, the FSA has described these specified investments in a way that mirrors the activities specified in the Regulated Activities Order (see AUTH 2.6). The FSA has, however, sub-divided certain specified investments in the Regulated Activities Order to distinguish those investments which, among other things, are considered to have significantly different risk profiles. These are:

1. (1)

   commodity futures and commodity options and options on commodity futures, which have been distinguished from other futures and options;

2. (2)

   spread bets, which have been distinguished from other contracts for differences; and

3. (3)

   rolling spot forex contracts, which have been distinguished from other contracts for differences and futures.