Article 2 Amendment of the Regulated Activities Order
The Regulated Activities Order is amended as follows.
In article 55 (other exclusions to the activity of advising on investments)f1—
in the heading, after “exclusions”, insert “etc.”;
after paragraph (1), insert—
“(1A)Article 53 is also subject to article 55A(2).”.
After article 55 insert—
“CHAPTER 12A
Providing Targeted Support
Providing Targeted Support
55A(1)Providing targeted support is a specified kind of activity.
(2)Where a person provides targeted support they are not advising an individual for the purposes of article 53 (advising on investments).
(3)For the purposes of paragraphs (1) and (2), a person (“P”) provides targeted support when—
(a)P uses information about an individual to group the individual with other individuals in a group who share—
(i)similar characteristics;
(ii)similar circumstances; or
(iii)similar characteristics and similar circumstances;
(b)P makes a recommendation which—
(i)is provided to the individual;
(ii)constitutes a recommendation for the individual to do or not do any of the following—
(aa)buy, sell, subscribe for, exchange, redeem, hold or underwrite a particular investment which is a security, structured deposit or a relevant investment; or
(bb)exercise any right conferred by such an investment to buy, sell, subscribe for, exchange or redeem such an investment; and
(iii)is presented as suitable for the individual on the basis of the individual being in the group; and
(c)P makes a statement to the individual in accordance with paragraphs (4) and (5).
(4)The statement made by P must specify—
(a)that the recommendation is not based on a comprehensive consideration by P of the individual’s characteristics or circumstances;
(b)that the recommendation is not specific to the individual; and
(c)the characteristics, or circumstances, or both if applicable, of the group which P has used as the basis for the recommendation.
(5)The statement must be made by P at the same time as the recommendation is made to the individual.
(6)In this article,
“the group” means the group of individuals referred to in paragraph (3)(a).”.