CHAPTER IU.K.SUBJECT MATTER, SCOPE AND DEFINITIONS

Article 4U.K.

For the purposes of this Regulation, the following definitions apply:

(1)

‘packaged retail investment product’ or ‘PRIP’ means an investment, including instruments issued by special purpose vehicles as defined in point (26) of Article 13 of Directive 2009/138/EC or securitisation special purpose entities as defined in point (an) of Article 4(1) of the Directive 2011/61/EU of the European Parliament and of the Council(1), where, regardless of the legal form of the investment, the amount repayable to the retail investor is subject to fluctuations because of exposure to reference values or to the performance of one or more assets which are not directly purchased by the retail investor;

(2)

‘insurance-based investment product’ means an insurance product which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations;

(3)

‘packaged retail and insurance-based investment product’ or ‘PRIIP’ means a product that is one or both of the following:

(a)

a PRIP;

(b)

an insurance-based investment product;

(4)

‘packaged retail and insurance-based investment product manufacturer’ or ‘PRIIP manufacturer’ means:

(a)

any entity that manufactures PRIIPs;

(b)

any entity that makes changes to an existing PRIIP including, but not limited to, altering its risk and reward profile or the costs associated with an investment in a PRIIP;

(5)

[F1‘selling a PRIIP’ means—

(a)

offering a PRIIP contract to a retail investor in the United Kingdom; or

(b)

concluding a PRIIP contract with a retail investor in the United Kingdom;

(5A)

‘advising on a PRIIP’ means advising a retail investor in the United Kingdom on a PRIIP;]

(6)

‘retail investor’ means:

(a)

[F2a client (as defined in point (7) of Article 2(1) of the markets in financial instruments regulation) who is not a professional client;

(b)

a customer, where that customer would not qualify as a professional client;]

(6A)

[F3‘customer’ means a customer within the meaning of the provisions of FSMA and any rules or regulations made under FSMA which were relied on immediately before IP completion day to implement Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution ;

(6B)

‘professional client’ means a professional client as defined in point (8) of Article 2(1) of the markets in financial instruments regulation;]

(7)

‘durable medium’ means a durable medium as defined in point (m) of Article 2(1) of Directive 2009/65/EC;

(8)

[F4‘FCA’ means the Financial Conduct Authority;

(9)

‘third country’ means a country or territory outside the United Kingdom;

(10)

‘FSMA’ means the Financial Services and Markets Act 2000;

(11)

‘the markets in financial instruments regulation’ means Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012;

(12)

In this Regulation, a reference to a provision of rules made under FSMA is a reference to that provision as it has effect on IP completion day.]

Textual Amendments

(1)

Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).