Related provisions for BIPRU 13.5.23

BIPRU 13.4.14G01/01/2007

For the purposes of calculating the replacement cost, where an exposure relates to collateral posted to cover a negative mark to market position on a derivative contract, the negative mark to market exposure may be offset against the collateral exposure if the requirements in BIPRU 5 are met.

BIPRU 3.7.2R01/01/2007

This table belongs to BIPRU 3.7.1 R

[Note: BCD Annex II]

Category	Item	Percentage
Full risk	Guarantees having the character of credit substitutes Credit derivatives Acceptances Endorsements on bills not bearing the name of another credit institution Transactions with recourse Irrevocable standby letters of credit having the character of credit substitutes Assets purchased under outright forward purchase agreements Forward deposits The unpaid portion of partly-paid shares and securities Asset sale and repurchase agreements as defined in Article 12(3) and (5) of the Bank Accounts Directive Other items also carrying full risk	100%
Medium risk	Documentary credits issued and confirmed (see also medium/low risk). Warranties and indemnities (including tender, performance, customs and tax bonds) and guarantees not having the character of credit substitutes. Irrevocable standby letters of credit not having the character of credit substitutes. Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of more than one year. Note issuance facilities (NIFs) and revolving underwriting facilities (RUFs).	50%
Medium/low risk	Documentary credits in which underlying shipment acts as collateral and other self-liquidating transactions. Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of up to and including one year which may not be cancelled unconditionally at any time without notice or that do not effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness.	20%
Low risk	Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) which may be cancelled unconditionally at any time without notice, or that do effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness. Retail credit lines may be considered as unconditionally cancellable if the terms permit the firm to cancel them to the full extent allowable under consumer protection and related legislation.	0%

BIPRU 8.7.20R01/01/2007

A firm may use a combination of the CCR standardised method, the CCR mark to market method and the CCR internal model method on a permanent basis with respect to the firm's UK consolidation group or non-EEA sub-group for the purposes of calculating the consolidated credit risk requirement. In particular, where the firm is permitted to apply the CCR internal model method on a consolidated basis with respect to its UK consolidation group or non-EEA sub-group, it may combine the

EG 19.34.103/01/2018

1The MiFI Regulations in part implement MiFID. The FCA has investigative and enforcement powers in relation to both criminal and non-criminal breaches of the MiFI Regulations (including requirements imposed on persons subject to the MiFI Regulations by MiFIR and any directly applicable EU regulation made under MiFIR or MiFID). The MiFI Regulations impose requirements on:(1) persons holding positions in relevant contracts for commodity derivatives trading on trading venues and

BIPRU 11.6.5R01/01/2007

A firm applying credit risk mitigation techniques must disclose the following information:(1) the policies and processes for, and an indication of the extent to which the firm makes use of, on- and off-balance sheet netting;(2) the policies and processes for collateral valuation and management;(3) a description of the main types of collateral taken by the firm;(4) the main types of guarantor and credit derivative counterparty and their creditworthiness;(5) information about market

TC 2.1.7R03/01/2018

A firm must ensure that an employee does not carry on any of the following activities without first attaining 16each module of an appropriate qualification:1616(1) [deleted]1616(1A) giving personal recommendations25 on and dealing in securities which are not stakeholder pension schemes, personal pension schemes18 or broker funds;16(1B) giving personal recommendations25 on and dealing in derivatives;(2) the activity of a broker fund adviser;(3) advising on syndicate participation

INSPRU 3.1.58R31/12/2006

A firm must cover its index-linked liabilities with:(1) either:(a) the assets which represent that index; or(b) assets of appropriate security and marketability which correspond, as closely as possible, to the assets which are comprised in, or which form, the index or other reference of value to which those liabilities are linked; or(2) a portfolio of assets whose value or yield is reasonably expected to correspond closely with the index-linked liability; or(3) an index-linked

COLL 5.4.6R18/03/2016

(1) Collateral is adequate for the purposes of this section only if it is:(a) transferred to the depositary or its agent;(aa) 6for a UCITS scheme, received under a title transfer arrangement;(ab) 6for a UCITS scheme, at all times equal in value to the market value of the securities transferred by the depositary plus a premium;(b) for a non-UCITS retail scheme, at all times 6at least equal in value 6to the value of the securities transferred by the depositary; and(c) for a non-UCITS

BIPRU 9.9.3R01/01/2007

(1) Where there is an exposure to different tranches in a securitisation, the exposure to each tranche must be considered a separate securitisation position.(2) The providers of credit protection to securitisation positions must be treated as holding positions in the securitisation.(3) securitisation positions include exposures to a securitisation arising from interest rate or currency derivative contracts.[Note:BCD Article 96(2)]

TC App 1.1.1R03/01/2018

1Activity	Products/Sectors		Is there an appropriate qualification4requirement? 4
Designated investment business carried on for a retail client
Providing basic advice	1.	Stakeholder products excluding a deposit-based stakeholder product	No
Advising or giving personal recommendations (as relevant)13	2.	Giving personal recommendations on securities 13 which are not stakeholder pension schemes, personal pension schemes 7 or broker funds	Yes
	3.	Giving personal recommendations on derivatives 13	Yes2
	4.	Giving personal recommendations on retail investment products 13 which are not broker funds 6 6	Yes2
	5.	Giving personal recommendations on13 Friendly Society life policies where the employee is not reasonably expected to receive a remuneration of greater than £1000 a year in respect of such sales	No2
	6.	Giving personal recommendations on13 Friendly Society tax-exempt policies (other than Holloway sickness policies where the Holloway policy special application conditions are met)5	Yes2
	7.	Giving personal recommendations on long-term care insurance contracts 13	Yes2
	8.	Giving personal recommendations on investments 13 in the course of corporate finance business	Yes2
	9.	Advising on syndicate participation at Lloyd's	Yes2
	129A.	Advising on P2P agreements	Yes
Undertaking the activity in column 2	10.	Broker fund adviser	Yes
Undertaking the activity in column 2	11.	Pension transfer specialist	Yes2
Giving personal recommendations13 and dealing	12.	Giving personal recommendations on and dealing in securities 13 which are not stakeholder pension schemes, personal pension schemes 7 or broker funds	Yes
Giving personal recommendations13 and dealing	13.	Giving personal recommendations on and dealing in derivatives 13	Yes2
4Dealing	13A.8	Securities which are not stakeholder pension schemes, personal pension schemes 7 or broker funds	No
4Dealing	413B.8	Derivatives	No
8 MiFID business bidding	13C.	Emissions auction products that are financial instruments	No
Managing	14.	Investments	Yes
Overseeing on a day-to-day basis	15.	Operating a collective investment scheme or undertaking the activities of a trustee or depositary of a collective investment scheme	Yes
	16.	Safeguarding and administering investments or holding client money	Yes2
	17.	Administrative functions in relation to managing investments	Yes2
	18.	Administrative functions in relation to effecting or carrying out contracts of insurance which are life policies	Yes2
	19.	Administrative functions in relation to the operation of stakeholder pension schemes	Yes2
Mortgage Activity10 and reversion activity carried on for a customer 10
9 10Advising; arranging (bringing about) an execution-only sale, excluding variations to an existing home finance transaction except where the effect is to change all or part of the home finance transaction from one interest rate to another. See Note 3, which for the avoidance of doubt forms part of this rule.	20	Regulated mortgage contracts for a non-business purpose	Yes
	20A	Regulated mortgage contracts for a business purpose	No
	21	Equity release transactions	Yes
9Designing scripted questions for execution-only sales	21A	Regulated mortgage contracts for a non-business purpose	Yes
	21B	Regulated mortgage contracts for a business purpose	No
	22	Equity release transactions	Yes
Overseeing execution-only sales on a day-to-day basis9 9	23.	Equity release transactions	Yes
11 MCD credit agreement activities carried on for consumers
11manufacturing	23A	an MCD credit agreement	No
11 entering into a regulated mortgage contract or entering into a regulated credit agreement as lender	23B	an MCD credit agreement	No
11 arranging (bringing about) regulated mortgage contracts or acting as an MCD credit broker	23C	an MCD credit agreement	No
11 advising on a regulated mortgage contract or advising on a regulated credit agreement for the acquisition of land	23D	an MCD credit agreement	No
11directly managing or supervising employees who carry on any of the MCD credit agreement activities 23A to 23D	23E	an MCD credit agreement	No
[Note: article 9(1) of the MCD]11
Non-investment insurance business carried on for a consumer
Giving personal recommendations13	24.	Giving personal recommendations on non-investment insurance contracts 13	No
3 Regulated sale and rent back activity carried on for a customer
Advising	25.	Regulated sale and rent back agreements	No
Overseeing an execution-only sale 10 on a day-to-day basis 10	26.	Regulated sale and rent back agreements	No
Notes:
1.	In the Appendix the heading and types of business specified in the headings are to be read in conjunction with the paragraphs appearing beneath them.
2.	Thus, for example, paragraph 24,13 consistent with the heading above it, refers only to personal recommendations given in relation to13 non-investment insurance contracts given to a consumer.10 3 3
122A.	In relation to activity number 9A, see TC 2.1.5HR and TC 2.1.6R(2). There is no qualification for this activity in the list of qualifications set out in TC Appendix 4E. However, the effect of TC 2.1.5HR is that an employee advising on P2P agreements must be qualified to the same standard as if that employee were providing investment advice to retail clients on retail investment products.
103.	For the purpose of product numbers 20, 20A and 21 the activity of arranging (bringing about) referred to in the activity column: (a) includes activity which would be arranging (bringing about) but for the exclusion in article 28A of the Regulated Activities Order; and (b) does not include activities which taken on their own would not fall within the definition of that activity. For these purposes no account should be taken of the fact that for an activity to be a regulated activity it must be carried on by way of business (see PERG 4.3).
4.	In this Appendix, paragraphs 23A, 23B, 23C, 23D and 23E relate to the implementation of article 9(1) of the MCD. The specified activities do not, in and of themselves, attract a qualification requirement. However, where those activities overlap with those specified under the heading "mortgage activity and reversion activity carried on for a customer", qualification requirements may apply.

REC 2.1.4G03/01/2018

Location of recognition requirements and guidance

Recognition Requirements Regulations	Subject	Section in REC 2/other parts of the Handbook 5
Regulation 6	Method of satisfying recognition requirements	2.2
Part I of the Schedule	UK RIE recognition requirements
Paragraph 1	Financial resources	2.3
Paragraph 2	Suitability	2.4
5Paragraphs 2A and 2B	Management Body	2.4A
Paragraphs 3, 3A, 3B, 3C, 3D, 3E, 3G and 3H5	Systems and controls, market making agreements, halting trading, direct electronic access, co-location services, fee structures, algorithmic trading, tick size regimes, synchronisation of business clocks5	2.5
Paragraphs 4(1), 4(2)(aa) and 4C5 2 2	General safeguards for investors and publication of data regarding execution of transactions5	2.6
Paragraph 4(2)(a)	Access to facilities	2.7
5	5	5
Paragraph 4(2)(c)	Availability of relevant information	2.12
Paragraph 4(2)(d)	Settlement	2.8
Paragraph 4(2)(e)	Transaction recording	2.9
2Paragraph 4(2)(ea)	Conflicts	2.5
Paragraph 4(2)(f) and 4(2)(fa)5	Financial crime and market abuse	2.10
Paragraph 4(2)(g)	Custody	2.11
Paragraph 4(3)	Definition of relevant information	2.12
5 2	5	5
5 2	5	5
Paragraph 6	Promotion and maintenance of standards	2.13
Paragraph 7	Rules and consultation	2.14
Paragraphs 7A and 9ZB (regulated markets only)5 2	Admission of financial instruments to trading	2.12
Paragraphs 7B, 7C and 9ZC (regulated markets only)5 2	Access to facilities	2.7
5Paragraphs 7BA & 7BB	Position management and position reporting re commodity derivatives	2.7A
2Paragraph 7D	Settlement and clearing facilitation services5	2.8
Paragraphs 7E and 7F5 2	Suspension and removal of financial instruments from trading	2.6
Paragraph 8	Discipline	2.15
Paragraph 9	Complaints	2.16
Paragraphs 9A, 9B, 9C, 9D, 9E, 9F, 9G, 9H and 9ZD5 2	Operation of a multilateral trading facility or an organised trading facility5	2.16A/MAR 5 and MAR 5A
5Paragraph 9ZA (regulated markets only)	Order execution	2.6
5Paragraph 9K	Provision of data reporting services	2.16B/ MAR 9
Part II of the Schedule	UK RIE default rules in respect of market contracts	2.174

COBS 2.2.-1R03/01/2018

(1) [deleted]51(2) This section applies in relation to5designated investment business other than MiFID, equivalent third country or optional exemption business5, carried on for a retail client: (a) in relation to a derivative, a warrant, a non-readily realisable security, a P2P agreement,4 or stock lending activity, but as regards the matters in COBS 2.2.1R (1)(b) only; and (b) in relation to a retail investment product2, but as regards the matters in COBS 2.2.1R (1)(a) and (d)

REC 2.12.2AAUK03/01/2018

7Schedule to the Recognition Requirements Regulations, Paragraph 9ZB

[Note: This paragraph is relevant to regulated markets only. See REC 2.16A regarding MTFs or OTFs.]

(1)	The rules of the [UK RIE] must ensure that all -
	(a)	[financial instruments] admitted to trading on a [regulated market] operated by it are capable of being traded in a fair, orderly and efficient manner;
	(b)	[transferable securities] admitted to trading on a [regulated market] operated by it are freely negotiable; and
	(c)	contracts for derivatives admitted to trading on a [regulated market] operated by it are designed so as to allow for their orderly pricing as well as for the existence of effective settlement conditions.
[Note:MiFID RTS 17 specifies further conditions for financial instruments to be admitted to trading on regulated markets]
(2)	The rules of the [UK RIE] must provide that where the [UK RIE], without obtaining the consent of the issuer, admits to trading on a regulated market operated by it a transferable security which has been admitted to trading on another regulated market, the [UK RIE] -
	(a)	must inform the issuer of that security as soon as is reasonably practicable; and
	(b)	may not require the issuer of that security to demonstrate compliance with the disclosure obligations.
(3)	The [UK RIE] must maintain effective arrangements to verify that issuers of transferable securities admitted to trading on a regulated market operated by it comply with the disclosure obligations.
(4)	The [UK RIE] must maintain arrangements to assist members of or participants in a regulated market operated by it to obtain access to information made public under the disclosure obligations.
(5)	The [UK RIE] must maintain arrangements to regularly review regularly whether financial instruments admitted to trading on a regulated market operated by it comply with the admission requirements for those instruments.
	[Note: see MiFID RTS 17]
(6)	In this paragraph -
	“the disclosure obligations” are the initial ongoing and ad hoc disclosure requirements contained in-
	(a)	Articles 17, 18 and 19 of the market abuse regulation;
	(b)	Articles 3, 5, 7, 8, 14 and 16 of Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectuses to be published when securities are offered to the public or admitted to trading;
	(c)	Articles 4 to 6, 15 and 16 to 19 of Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 relating to harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market; and
	(d)	EU legislation made under the provisions mentioned in paragraphs (a) to (c);
	and the legislation referred to in paragraphs (b) and (c) is given effect-
	(a)	in the United Kingdom by Part 6 of the [Financial Services and Markets Act 2000] Act and Part 6 rules (within the meaning of section 73A of the Act); or
	(b)	in another EEA State by legislation transposing the relevant Articles in that State.

FEES 4.4.9D01/04/2013

3To the extent that a firm4 has provided the information required by FEES 4.4.7 D to the FCA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of that direction.444

IPRU-INV 2.1.4R30/12/2015

This table belongs to IPRU-INV 2.1.1R

TYPE OF BUSINESS ACTIVITY	CHAPTER OF SOURCEBOOK
(i) managing investments other than for retail clients; or	Investment management firm - IPRU-INV 5
(ii) OPS activity; or	Investment management firm (which is an exempt CAD firm) - IPRU-INV 5 and 9
(iii) [deleted]
(iv) [deleted]
(iva) acting as trustee or depositary of a UCITS; or
(ivb) managing an AIF; or
(ivc) acting as trustee or depositary of an AIF; or
(v) acting as a residual CIS operator; or
(va) establishing, operating or winding up a personal pension scheme; or
(vi) safeguarding and administering investments;
(i) advising on, or arranging deals in, packaged products; or
(ii) managing investments for retail clients;	Personal investment firm - IPRU-INV 13
(i) a regulated activity carried on as a member of an exchange; or	Securities and futures firm (which is an exempt CAD firm) - IPRU-INV 9
(ii) acting as a market maker in securities or derivatives; or	Securities and futures firm (which is not a MiFID investment firm) - IPRU-INV 3
(iii) corporate finance business; or
(iv) dealing or arranging deals in securities or derivatives, other than interprofessional investments; or
(v) the provision of clearing services as a clearing firm; or
(vi) spread betting;

SUP App 3.9.5G03/01/2018

3Table 2: MiFID investment services and activities		Part II RAO Activities13	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, 82B,12 83-85, 89
2.	Execution of orders on behalf of clients	Article 14, 21	A Article 76-81,82B,12 83-85, 89
3.	Dealing on own account	Article 14	Article 76-81, 82B,12 83-85, 89
4.	Portfolio management	Article 37 (14, 21, 25 - see Note 1) 2	Article 76-81, 82B,12 83-85, 89
5.	Investment advice	Article 53(1)10	Article 76-81, 82B,12 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, 82B,12 83-85, 89
7.	Placing of financial instruments without a firm commitment basis	Article 21, 25	Article 76-81, 82B,12 83-85, 89
8.	Operation of Multilateral Trading Facilities	Article 25D5 (see Note 2) 5	Article 76-81, 82B,12 83-85, 89
12 9.	Operation of an OTF	Article 25DA (see Note 3)	Article 77, 77A, 78, 79, 80, 81, 82B, 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, 82B,12 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(1)10, 64	Article 76-80, 82B,12 83-85, 89
4.	Foreign exchange services where these are connected with the provision of investment services	Article 14, 21, 25, 53(1)10, 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(1)10, 64 (see Note 4)13	Article 76-81, 82B,12 83-85, 89
6.	Services related to underwriting	Article 25, 53(1)10, 64	Article 76-81, 82B,12 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(1)10, 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
Note 3. A firm operating an OTF under article 25DA does not need to have a permission covering other regulated activities, unless it performs other regulated activities in addition to operating an OTF.12
13Note 4: A firm which provides investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments does not need permission under article 53(1) of the Regulated Activities Order if it is appropriately authorised (see article 53(1) to (1D) of the Regulated Activities Order).

MAR 5A.3.5R03/01/2018

A firm must not engage in:(1) matched principal trading on an OTF operated by it except in bonds, structured finance products, emission allowances and derivatives which have not been declared subject to the clearing obligation in accordance with article 5 of EMIR, and where the client has consented; or(2) dealing on own account on an OTF operated by it, excluding matched principal trading, except in sovereign debt instruments for which there is not a liquid market.[Note: article

SYSC 13.6.4G07/03/2016

A firm should have regard to SYSC 13.6.3 G in relation to approved persons, people occupying positions of high personal trust (for example, security administration, payment and settlement functions); and people occupying positions requiring significant technical competence (for example, derivatives trading and technical security administration). A firm should also consider the rules and guidance for approved persons in other parts of the Handbook (including APER, COCON2 and SUP)

MAR 1.2.19AG23/06/2017

6ESMA has issued guidelines under article 7(5) of the Market Abuse Regulation which relate to the definition of inside information in the context of commodity derivatives. [Note: the guidelines are available at https://www.esma.europa.eu/document/mar-guidelines-commodity-derivatives.]

CASS 5.8.3R14/01/2005

(1) A firm which has in its possession or control documents evidencing a client's title to a contract of insurance or other similar documents (other than documents of no value) or which takes into its possession or control tangible assets belonging to a client, must take reasonable steps to ensure that any such documents or items of property:(a) are kept safe until they are delivered to the client;(b) are not delivered or given to any other person except in accordance with instructions

Related provisions for BIPRU 13.5.23

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