CHAPTER ISUBJECT MATTER, SCOPE AND DEFINITIONS
Article 2
F11.
This Regulation applies to—
(a)
PRIIP manufacturers in relation to PRIIPs which are, or are to be, made available to retail investors in the United Kingdom; and
(b)
persons advising on, or selling, PRIIPs.
2.
This Regulation shall not apply to the following products:
(a)
non-life insurance products as listed in Annex I to Directive 2009/138/EC;
(b)
life insurance contracts where the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or infirmity;
(c)
deposits other than structured deposits as defined in F2point (23) of Article 2(1) of the markets in financial instruments regulation;
F3(d)
non-equity securities (as defined in point (c) of Article 2(1) of Directive 2003/71/EC) issued by—
(i)
the United Kingdom, any part of the United Kingdom, or a third country;
(ii)
a local authority in the United Kingdom or one of the regional or local authorities of a third country;
(iii)
a public international body of which the United Kingdom or a third country is a member; or
(iv)
the Bank of England, the European Central Bank or the central bank of a third country;
(da)
shares in the capital of the Bank of England or of a central bank of a third country;
(db)
securities (as defined in point (a) of Article 2(1) of Directive 2003/71/EC) unconditionally and irrevocably guaranteed by—
(i)
the United Kingdom, any part of the United Kingdom, or a third country; or
(ii)
a local authority in the United Kingdom or one of the regional or local authorities of a third country;
(dc)
securities (as defined in point (a) of Article 2(1) of Directive 2003/71/EC) issued by associations with legal status or non-profit-making bodies recognised by the United Kingdom, any part of the United Kingdom, or a third country with a view to their obtaining the means necessary to achieve their non-profit-making objectives;
(dd)
non-equity securities (as defined in point (c) of Article 2(1) of Directive 2003/71/EC) issued in a continuous or repeated manner (as defined in point (l) of Article 2(1) of that Directive) by credit institutions (as defined in point (g) of Article 2(1) of that Directive) provided that these securities—
(i)
are not subordinated, convertible or exchangeable;
(ii)
do not give a right to subscribe to or acquire other types of securities and are not linked to a derivative instrument;
(iii)
materialise reception of repayable deposits;
(iv)
are covered by the compensation scheme within the meaning of section 213(2) of FSMA or by a similar scheme in a third country;
(de)
securities as referred to in points (g), (i) and (j) of Article 1(2) of Directive 2003/71/EC;
(e)
pension products which, under F4the law of the United Kingdom, any part of the United Kingdom, or a third country, are recognised as having the primary purpose of providing the investor with an income in retirement and which entitle the investor to certain benefits;
(f)
(g)
individual pension products for which a financial contribution from the employer is required by F6the law of the United Kingdom, any part of the United Kingdom, or a third country and where the employer or the employee has no choice as to the pension product or provider.
F7(h)
shares in a closed-ended investment company that is UK-listed.
F83.
For the purposes of paragraph 2(h)—
(a)
“closed-ended investment company” means a company that meets conditions A to D;
(b)
a closed-ended investment company is “UK-listed” if all of the company’s ordinary shares (of each class if there is more than one) are admitted to trading on a UK regulated market or a UK multilateral trading facility.
4.
Condition A is that all, or substantially all, of the business of the company is investing its funds in shares, land or other assets with the aim of spreading investment risk and giving members of the company the benefit of the results of the management of its funds.
5.
Condition B is that the company raises funds by offering, on one or more occasions, a fixed number of shares to the public.
6.
Condition C is that the company’s shareholders are not entitled to have their shares in the company redeemed or repurchased out of funds provided by the company.
7.
Condition D is that the company is not a venture capital trust within the meaning of section 259(1) of the Income Tax Act 2007.
8.
In paragraph 3, “UK regulated market” and “UK multilateral trading facility” have the meanings given in point (13A) and (14A) respectively of Article 2 of the markets in financial instruments regulation (definitions).