AUTH App 1.25 Advice must relate to an investment which is a security or contractually based investment

For the purposes of section 53 of the Regulated Activities Order, a security or relevant investment is any one of the following:1

1. (1)

   shares;

2. (2)

   debentures;

3. (3)

   government and public securities;

4. (4)

   warrants;

5. (5)

   certificates representing certain securities;

6. (6)

   units in collective investment schemes;

7. (7)

   stakeholder pension schemes;

8. (8)

   options;

9. (9)

   futures;

10. (10)

    contracts for differences;

11. (11)

    contracts of insurance;1

12. (12)

    funeral plan contracts (with effect from 1 January 2002);

13. (13)

    rights to or interests in such investments.

Article 53 does not apply to advice given on any of the following:

1. (1)

   deposit or other bank or building society accounts;

2. (2)

   interests under the trusts of an occupational pension scheme (but rights under an occupational pension scheme that is a stakeholder pension scheme will be securities).1

3. (3)

   mortgages or other loans; (but note that advising on regulated mortgage contracts is a separate regulated activity under Article 53A of the Regulated Activities Order - see the guidance in AUTH App 4 (Regulated activities connected with mortgages));1

4. (4)

   National Savings products;

5. (5)

   foreign exchange (or cash);

6. (6)

   commodities (for example, gold);

7. (7)

   real estate;

8. (8)

   any other physical property capable of having investment potential (for example, works of art, racehorses) unless investment is made through a collective investment scheme;

9. (9)

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