AUTH 3 Annex 2

Chapter 3

Securities and futures firm

Chapter 5

Investment management firm

Chapter 10

Securities and futures firm

Chapter 13

Personal investment firm1

The table below shows how a firm's main regulated activities determine its prudential category. A firm's 'main regulated activities' in this context are the regulated activities included in the firm's Part IV permission from which the firm derives or is expected to derive the most substantial part of its gross income, including commissions. The aggregate gross income from all of the activities listed against each prudential category should be considered to determine which source is the most substantial.

The gross income is based on the business plan submitted as part of the firm's application for a Part IV permission.

(i) Managing investments other than for private customers or where the assets managed are primarily derivatives;

(ii) OPS activity;

(iii) acting as the manager or trustee of an AUT;

(iv) acting as the ACD or depositary of an ICVC;

(v) establishing, operating or winding up a collective investment scheme other than an AUT or ICVC; and

(vi) safeguarding and administering investments.

Investment management firm

(i) Advising on investments, or arranging (bringing about) deals in investments in relation to, packaged products; and

(ii) managing investments for private customers.

Personal investment firm

(i) An activity carried on as a member of an exchange;

(ii) making a market in securities or derivatives;

(iii) corporate finance business;

(iv) dealing, or arranging (bringing about) deals in investments, in securities or derivatives;

(v) the provision of clearing services as a clearing firm;

(vi) managing investments where the assets managed are primarily derivatives; and

(vii) activities relating to spread bets;

Securities and futures firm