The Perimeter Guidance manual - FCA Handbook

1 The Perimeter Guidance manual PERG Contents The Perimeter Guidance manual PERG 1 introduction to the Perimeter Guidance manual Application and purpose introduction Status of Guidance General Guidance to be found in PERG. What other Guidance about the Perimeter is available from the FCA? PERG 2 Authorisation and regulated activities Application and purpose introduction The business element Link between activities and the United Kingdom Link between regulated claims management activities and Great Britain Investments and activities: general Speci ed investments: a broad outline Activities: a broad outline Exclusions applicable to particular regulated activities Regulated activities.

2 Exclusions applicable in certain circumstances Persons carrying on regulated activities who do not need authorisation Persons who are exempt for credit-related regulated activities 2 Annex 1 Authorisation and regulated activities 2 Annex 2 Regulated activities and the permission regime PERG 3A Guidance on the scope of the Electronic Money Regulations 2011. introduction General issues The de nition of electronic money Small electronic money institutions, mixed businesses, distributors, agents and exempt bodies Exclusions Territorial scope Transitional arrangements PERG 4 Guidance on regulated activities connected with mortgages Application and purpose introduction Regulated activities related to mortgages What is a regulated mortgage contract?

3 Mortgage contracts entered into before 21 March 2016. Arranging regulated mortgage contracts PERG i Release 17 Mar 2022. PERG Contents Advising on regulated mortgage contracts Entering into a regulated mortgage contract Administering a regulated mortgage contract Agreeing to carry on a regulated activity Exclusions applying to more than one regulated activity Activities within scope of the Mortgage Credit Directive Regulation of buy to let lending Link between activities and the United Kingdom Appointed representatives Other exemptions Mortgage activities carried on by professional rms Mortgage activities carried on by 'packagers'.

4 Mortgage activities Interaction with the Consumer Credit Act and consumer credit regulated activities Regulated activities related to mortgages: owchart PERG 5 Guidance on insurance distribution activities Application and purpose introduction Contracts of insurance The business test The regulated activities: dealing in contracts as agent The regulated activities: arranging deals in, and making arrangements with a view to transactions in, contracts of insurance The regulated activities: assisting in the administration and performance of a contract of insurance The regulated activities: advising on contracts of insurance The Regulated Activities: agreeing to carry on a regulated activity Renewals Other aspects of exclusions Link between activities and the United Kingdom Appointed representatives Exemptions Illustrative tables Meaning of insurance distribution' and reinsurance distribution'.

5 PERG 6 Guidance on the Identi cation of Contracts of Insurance Application Purpose of Guidance Background Limitations of this Guidance General principles The factors Examples PERG 7 Periodical publications, news services and broadcasts: applications for certi cation Application and purpose Release 17 Mar 2022 PERG ii PERG Contents introduction Does the activity require authorisation? Does the article 54 exclusion apply? When is it appropriate to apply for a certi cate? Applications for a certi cate Post-certi cation issues PERG 8 Financial promotion and related activities Application and purpose introduction Financial promotion Invitation or inducement In the course of business Communicate Engage in investment activity Engage in claims management activity Having an effect in the United Kingdom Circumstances where the restriction in section 21 does not apply Types of nancial promotion Types of exemption under the Financial Promotion Order Exemptions applying to all controlled activities

6 Exemptions applying to nancial promotions concerning deposits and certain contracts of insurance Other nancial promotions Financial promotions by members of the professions (articles 55 and 55A). Financial promotions concerning funeral plans Financial promotions concerning agreements for qualifying credit Financial promotions concerning consumer credit and consumer hire Financial promotions concerning insurance distribution activities Financial promotions concerning the Lloyd's market Additional restriction on the promotion of life policies Additional restriction on the promotion of collective investment schemes Company statements.

7 Announcements and brie ngs The Internet Regulated activities Advising on investments Advice must relate to an investment which is a security or contractually based investment The investment must be a particular investment Advice to be given to persons in their capacity as investors (on the merits of their investing as principal or agent). Advice or information Advice must relate to the merits (of buying or selling a particular investment). Medium used to give advice or information Pre-purchase questioning (including decision trees).

8 Personal recommendations Exclusions for advising on investments Arranging deals in investments Introducing The business test Authorisation and exemption Illustrative tables AIFMD Marketing PERG iii Release 17 Mar 2022. PERG Contents 8 Annex 1 Examples of what is and is not a personal recommendation and advice PERG 9 Meaning of open-ended investment company Application and Purpose introduction The de nition collective investment scheme (section 235 of the Act). The property condition (section 236(2) of the Act). The investment condition (section 236(3) of the Act): general The investment condition: the 'reasonable investor'.

9 The investment condition : the 'expectation test' (section 236(3)(a) of the Act). The investment condition : the 'satisfaction test' (section 236(3)(b) of the Act). Signi cance of being an open-ended investment company Frequently Asked Questions PERG 10 Guidance on activities related to pension schemes Background General issues Pension Scheme Trustees Pension scheme service providers other than trustees The application of requirements which implemented EU directives Employers and af nity groups (such as trade unions). 10 Annex 1 Flow chart showing the steps to be considered in deciding whether authorisation is needed.

10 10 Annex 2 Flow chart showing the additional steps to be considered by trustees of occupational pension schemes and other persons in deciding whether authorisation is needed for managing the assets of such a scheme 10 Annex 3 Table summarising regulatory position of pension scheme trustees and service providers 10 Annex 4 Table summarising regulatory position of employers and af nity groups. 10 Annex 5 Table summarising regulatory position concerning nancial promotions by trustees, employers and af nity groups. PERG 11 Guidance on property investment clubs and land investment schemes Background Guidance on property investment clubs Guidance on land investment schemes involving planning permission arrangements PERG 12 Guidance for persons running or advising on personal pension schemes Background Establishing.