SUP App 3.9 Mapping of MiFID, CRD, AIFMD, UCITS Directive and Insurance Mediation Directive to the Regulated Activities Order 7

SUP App 3.9.1 G 28/02/2014

The following Tables 1, 2, 2ZA 7 2A and 2B1 provide an outline of the regulated activities and specified investments that may be of relevance to firms considering undertaking passported activities under the CRD 6, 1 MiFID 3, AIFMD 7, the UCITS Directive and the Insurance Mediation Directive.1 The tables may be of assistance to UK firms that are thinking of offering financial services in another EEA State and to EEA firms that may offer those services in the United Kingdom.

1 6 1 3 1

SUP App 3.9.2 G 28/02/2014

The tables provide a general indication of the investments and activities specified in the Regulated Activities Order that may correspond to categories provided for in the CRD 6, 1 MiFID 3, AIFMD 7, the UCITS Directive or the Insurance Mediation Directive 1. The tables do not provide definitive guidance as to whether a firm is carrying on an activity that is capable of being passported, nor do the tables take account of exceptions that remove the effect of articles. Whether a firm is carrying on a passported activity will depend on the particular circumstances of the firm. If a firm's activities give rise to potential passporting issues, it should obtain specialist advice on the relevant issues.

1 6 1 3 1

SUP App 3.9.3 G 01/07/2003

In considering the issues raised in the tables, firms should note that:

(1)
article 64 of the Regulated Activities Order (Agreeing to carry on specific kinds of activity) applies in respect of agreeing to undertake the specified activity; and
(2)
article 89 of the Regulated Activities Order (Rights to or interests in investments) applies in respect of rights to and interests in the types of investments to which the category applies.

Activities set out in Annex 1 of the CRD6

SUP App 3.9.4 G 01/01/2014

Table 1: CRD activities 6 6		Part II RAO Activities	Part III RAO Investments
1.	Taking6 deposits and other repayable funds from the public 6	Article 5	Article 74
2.	Lending	Article 61, 64	Article 88
3.	Financial leasing
4.	Money transmission services
5.	Issuing and administering means of payment (eg credit cards, travellers' cheques and bankers' drafts)
6.	Guarantees and commitments
7.	Trading for own account or for account of customers in: (a) money market instruments (b) foreign exchange (c) financial futures and options (d) exchange and interest rate instruments (e) transferable securities	Article 14, 21, 25 (see Note 1), 64 Article 14, 21, 25, 64 Article 14, 21, 25, 64 Article 14, 21, 25, 64 Article 14, 21, 25, 64	Article 77, 78, 80, 83-85, 89 Article 83-85, 89 Article 83-85, 89 Article 83-85, 89 Article 76-81, 89
8.	Participation in share issues and the provision of services relating to such issues	Article 14, 21, 25, 53, 64	Article 76-81, 89
9.	Advice to undertakings on capital structure, industrial strategy and related questions and advice and services relating to mergers and the purchase of undertakings	Article 14, 21, 25, 53, 64	Article 76-80, 83-85, 89
10.	Money broking	Article 25, 64	Article 77, 78, 89
11.	Portfolio management and advice	Article 14, 21, 25, 37, 53, 64	Article 76-81, 83-85, 89
12.	Safekeeping and administration of securities	Article 40, 45, 64	Article 76-81, 83-85, 89
13.	Credit reference services
14.	Safe custody services	1	1 6
615.	Issuing electric money	Article 9B	Article 74A
3Note 12: The services and activities provided for in Sections A and B of Annex I of MiFID when referring to the financial instruments provided for in Section C of Annex I of that Directive are subject to mutual recognition according to the CRD from 1 January 2013.6See2 the table at SUP App 3.9.5 G below for mapping of MiFID investment services and activities.For further details relating to this residual category, please see the "CRD"6section of the passporting forms entitled "Notification of intention to establish a branch in another EEA State" and "Notification of intention to provide cross border services in another EEA State".2 2 6 6

Services set out in Annex I to MiFID3

SUP App 3.9.5 G 01/01/2012

3Table 2: MiFID investment services and activities		Part II RAO Investments	Part III RAO Investments
	A MiFID investment services and activities
1.	Reception and transmission of orders in relation to one or more financial instruments	Article 252	Article 76-81, 83-85, 89
2.	Execution of orders on behalf of clients	Article 14, 21	A Article 76-81, 83-85, 89
3.	Dealing on own account	Article 14	Article 76-81, 83-85, 89
4.	Portfolio management	Article 37 (14, 21, 25 - see Note 1) 2	Article 76-81, 83-85, 89
5.	Investment advice	Article 53	Article 76-81, 83-85, 89
6.	Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis	Article 14, 21	Article 76-81, 83-85, 89
7.	Placing of financial instruments without a firm commitment basis	Article 21, 25	Article 76-81, 83-85, 89
8.	Operation of Multilateral Trading Facilities	Article 25D5 (see Note 2) 5	Article 76-81, 83-85, 89
	Ancillary services	Part II RAO Activities	Part III RAO Investments
1.	Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management	Article 40, 45, 64	Article 76-81, 83-85, 89
2.	Granting credits or loans to an investor to allow him to carry out a transaction in one or more of the relevant instruments where the firm granting the credit or loan is involved
3.	Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings	Article 14, 21, 25, 53, 64	Article 76-80, 83-85, 89
4.	Foreign exchange services where these are connected with the provision of investment services	Article 14, 21, 25, 53, 64	Article 83-85, 89
5.	Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments	Article 53, 64	Article 76-81, 83-85, 89
6.	Services related to underwriting	Article 25, 53, 64	Article 76-81, 83-85, 89
7.	Investment services and activities as well as ancillary services of the type included under Section A or B of Annex I related to the underlying of the derivatives included under Section C 5, 6, 7 and 10-where these are connected to the provision of investment or ancillary services.	Article 14, 21, 25, 25D,5 37, 53, 64 5	Article 83 and 84
Note 1. A firm may also carry on these other activities when it is managing investments.2
Note 2. A firm operating an MTF under article 25D5 does not need to have a permission covering other regulated activities, unless it performs other regulated activities in addition to operating an MTF. 5

8Activities set out in article 6(2) to (4) of AIFMD

SUP App 3.9.5A G 28/02/2014

Table 2ZA: AIFMD activities		Part II RAO Activities	Part III RAO Investments
1.	AIFM management functions.	Article 51ZC	N/A (activity relates to property of any kind)
2.	Management of portfolios of investments, including those owned by pension funds and institutions for occupational retirement in accordance with article 19(1) of Directive 2003/41/EC, in accordance with mandates given by investors on a discretionary client-by-client basis (Note 2).	Articles 14, 21, 25, 37, 40 (arranging only), 64	Articles 76 to 81, 83 to 85, 89
3.	Investment advice (Note 2).	Articles 53, 64	Articles 76 to 81, 83 to 85, 89
4.	Safe-keeping and administration in relation to shares or units of collective investment undertakings.	Articles 40, 45, 64	Articles 76 to 81, 83 to 85, 89
5.	Reception and transmission or orders in relation to financial instruments.	Articles 25(1), 64	Articles 76 to 81, 83 to 85, 89
Note 1. See FUND 1.4.2 R to FUND 1.4.4 R for further information in relation to the activities that full-scope UK AIFMs are able to perform.
Note 2. See FUND 1.4.5 G for the position with respect to assets which are not financial instruments.

Activities set out in Article 6(2) and (3) of the UCITS Directive4

SUP App 3.9.6 G 28/02/2014

Table 2A: UCITS Directive activities		Part II RAO Activities	Part III RAO Investments
1.	The management of UCITS in the form of unit trusts / common funds or of investment companies; this includes the function mentioned in Annex II of the UCITS Directive (see Note 2).	Articles 14, 21, 25, 37, 51, 53, 64 OR8 Article 51ZA8	Articles 76-81, 83-85, 89 OR N/A (activity relates to property of any kind) (Note 3)
2.	Managing portfolios of investments, including those owned by pension funds, in accordance with mandates given by investors on a discretionary, client-by-client basis, where such portfolios include one or more of the instruments listed in Section C 3of Annex I 3to MiFID 3. 3 3	Articles 14, 21, 25, 37, 40 (arranging only),8 64 8	Articles 76-81, 83-85, 89
3.	Investment advice concerning one or more of the instruments listed in Section C3of Annex I 3to MiFID 3. 3	Articles 53, 64	Articles 76-81, 83-85, 89
4.	Safekeeping and administration services in relation to units of collective investment undertakings.	Articles 40, 45, 64	Articles 76-81, 83-85, 89
Note 1. A UCITS management company can only be authorised to carry on the non-core services set out in rows (3) and (4) of Table 2A if it is also authorised to carry on the activity set out in row (2) of the table (see COLL 6.9.9 R)8. 3 3 8
Note 2. The functions set out in Annex 2 to the UCITS Directive are:
1.	Investment management.
2.	Administration:
	a.	legal and fund management accounting services;
	b.	customer inquiries;
	c.	valuation and pricing (including tax returns);
	d.	regulatory compliance monitoring;
	e.	maintenance of unit-holder register;
	f.	distribution of income;
	g.	unit issues and redemptions;
	h.	contract settlements (including certificate dispatch);
	i.	record keeping.
3.	Marketing.
8Note 3. The regulated activity of managing a UCITS may be carried on for property of any kind (article 4(2) of the regulated activities order). However, the scheme property of a UCITS scheme is limited to certain types of property, in line with COLL 5 (Investment and borrowing powers).

1Activities set out in Article 2(3) of the IMD

SUP App 3.9.7 G 01/11/2007

Table 2B: Insurance Mediation Directive 2 Activities 2		Part II RAO Activities	Part III RAO Investments
1.	Introducing, proposing or carrying out other work preparatory to the conclusion of contracts of insurance.	Articles 25, 53 and 64	Articles 75, 89 (see Note 1)
2.	Concluding contracts of insurance	Articles 21, 25, 53 and 64	Articles 75, 89
3.	Assisting in the administration and performance of contracts of insurance, in particular in the event of a claim.	Articles 39A, 64	Articles 75, 89
Note 1. Rights to or interests in life policies are specified investments under Article 89 of the Regulated Activities Order, but rights to or interests in general insurance contracts are not.

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