PART 2AMENDMENTS TO THE PRINCIPAL ORDER

Activities—arranging deals in investments5

1

In article 25(1) (arranging deals in investments), for “contractually based investment”, substitute “relevant investment”.

2

In article 28 (arranging transactions to which the arranger is a party), after paragraph (2), insert—

3

But the exclusions in paragraphs (1) and (2) do not apply to arrangements made for or with a view to a transaction which relates to a contract of insurance, unless the person making the arrangements either—

a

is the only policyholder; or

b

as a result of the transaction, would become the only policyholder.

3

In article 29 (arranging deals with or through authorised persons)6, for paragraph (2), substitute—

2

But the exclusion in paragraph (1) does not apply if—

a

the transaction relates, or would relate, to a contract of insurance; or

b

A receives from any person other than the client any pecuniary reward or other advantage, for which he does not account to the client, arising out of his making the arrangements.

4

In article 30 (arranging transactions in connection with lending on the security of insurance policies)7, in paragraph (2)—

a

in the definition of “relevant authorised person”, for “qualifying contracts of insurance”, substitute “contracts of insurance”; and

b

in the definition of “relevant transaction”, for “qualifying contract of insurance”, substitute “contract of insurance”.

5

In article 33 (introducing)8

a

in paragraph (b)(iii), after “37”, insert “, 39A”;

b

at the end of paragraph (b)(iii), omit “and”; and

c

at the end of paragraph (c), insert—

  • ; and

    1. a

      the arrangements are made with a view to a person entering into a transaction which does not relate to a contract of insurance.

6

In article 35 (international securities self-regulating organisations), in paragraph (4)(a), for “contractually based investments”, substitute “relevant investments”.

7

In article 36(1) (other exclusions from the activity of arranging deals)9, for “and 72A (information society services)”, substitute “, 72A (information society services), 72B (activities carried on by a provider of relevant goods or services), 72C (provision of information about contracts of insurance on an incidental basis) and 72D (large risks contracts where risk situated outside the EEA)”.