PERG 8.25 Advice must relate to an investment which is a security or contractually based investment

For the purposes of article 53(1)3 of the Regulated Activities Order, a security or relevant investment is any one of the following:

1. (1)

   shares;

2. (2)

   debentures;

3. (2A)

   alternative debentures;2

4. (3)

   government and public securities;

5. (4)

   warrants;

6. (5)

   certificates representing certain securities;

7. (6)

   units in collective investment schemes;

8. (7)

   stakeholder pension schemes or personal pension schemes1;

9. (7A)

   emission allowances;4

10. (8)

    options;

11. (9)

    futures;

12. (10)

    contracts for differences;

13. (11)

    contracts of insurance;

14. (12)

    funeral plan contracts;

15. (13)

    rights to or interests in such investments.

Article 53(1)3 does not apply to advice given on any of the following:

1. (1)

   deposit or other bank or building society accounts (but note the exceptions and points in PERG 8.25.3G)4;

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);

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 PERG 4 (Regulated activities connected with mortgages));

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.

1. (1)

   4There are some circumstances in which giving advice about a deposit is a regulated activity.

2. (2)

   Providing basic advice on a stakeholder product is a separate regulated activity under article 52A of the Regulated Activities Order. A stakeholder product includes a stakeholder deposit account. See the guidance in PERG 2.7.14AG (Providing basic advice on stakeholder products) for more about this.

3. (3)

   Article 53(1) does apply to advice on structured deposits.