Designated investment business - FCA Rulebook Term

CASS Anatomy™ Go Premium IMPORTANT: CASS changed quite a bit after MiFID II. This resource therefore may well be out of date, even if it was accurate once, which it might not have been. This is an article about the FCA’s custody and client money rules — client assets — and is fondly known by its chapter in the FCA SourcebookTable of Contents | 1 | 1A | 3 | 5 | 6 (custody rules) | 7 (client money rules) | 7A | 8 | 9 (PBDA) | 10 Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Designated investment business is defined in the FCA handbook here Being based on the old Financial Markets and Services Act 2000, which predates, but somehow survives, MiFID, designated investment business is a wider confection than MiFID business, but large parts of it overlap.

Subject	Designated investment business	MiFID business
Order handling	NA	(1) Reception and transmission of orders in relation to one or more financial instruments;
Dealing for clients	(b) dealing in investments as agent (article 21) but only in relation to designated investments (other than P2P agreements); (c) arranging (bringing about) deals in investments (article 25(1)), but only in relation to designated investments (other than P2P agreements); (d) making arrangements with a view to transactions in investments (article 25(2)), but only in relation to designated investments (other than P2P agreements);	(2) Execution of orders on behalf of clients;
Dealing for house	(a) dealing in investments as principal (article 14), but disregarding the exclusion in article 15 (Absence of holding out etc);	(3) Dealing on own account;
Investment management	(e) managing investments (article 37), but only if the assets consist of or include (or may consist of or include) designated investments (other than P2P agreements);	(4) Portfolio management;
Advisory stuff	(m) advising on investments (except P2P agreements) (article 53(1) to (1D)), but only in relation to designated investments (other than P2P agreements); (ma) advising on P2P agreements (article 53(2)); (mb) advising on conversion or transfer of pension benefits (article 53E);	(5) Investment advice;
Underwriting	NA	(6) Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;
Uncommitted placement	NA	(7) Placing of financial instruments without a firm commitment basis;
	(da) operating a multilateral trading facility (article 25D);	(8) Operation of an MTF;
	(daa) operating an organised trading facility (article 25DA)	(9) Operation of an OTF.
Custody	(f) safeguarding and administering investments (article 40), but only if the assets consist of or include (or may consist of or include) designated investments(other than P2P agreements);	NA
Pension stuff	(l) establishing, operating or winding up a stakeholder pension scheme (article 52(a)) (la) establishing, operating or winding up a personal pension scheme (article 52(b)); (lb) providing basic advice on a stakeholder product (article 52B);	NA
Managing funds	(p) managing a UCITS; (q) acting as trustee or depositary of a UCITS; (r) managing an AIF; (s) acting as trustee or depositary of an AIF; (t) establishing, operating or winding up a collective investment scheme	NA
Random stuff	(ba) MiFID business bidding (part of bidding in emissions auctions) (article 24A); (db) operating an electronic system in relation to lending (article 36H) but only insofar as it relates to a lender or prospective lender under a P2P agreement; (ea) assisting in the administration and performance of a contract of insurance, but only if the contract of insurance is a designated investment. (g) sending dematerialised instructions (article 45(1)); (h) causing dematerialised instructions to be sent (article 45(2)); (n) agreeing to carry on a regulated activity in (a) to (h) and (m) (article 64).	NA