Arranging deals in investments and operating multilateral and organised trading facilities
Arranging deals in investments and operating multilateral and organised trading facilities

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Arranging deals in investments and operating multilateral and organised trading facilities
  • Arranging (bringing about) deals in investments
  • Making arrangements with a view to transactions occurring
  • Securities or relevant investments
  • Assistance with the interpretation of ‘buying’ and ‘selling’
  • Operation of a multilateral trading facility
  • Operation of an organised trading facility
  • Exclusions specific to arranging deals in investments
  • Exclusions of general applicability

Arranging deals in investments, operating a multilateral trading facility (MTF) and operating an organised trading facility (OTF) are regulated activities under articles 25 and 25D of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO).

The activities of arranging regulated mortgage contracts (RMCs), home reversion plans (HRPs), home purchase plans (HPPs), and arranging regulated sale and rent back agreements can be found in SI 2001/544, arts 25A–25C and 25E. For further information, see Practice Note: Arranging deals in home finance transactions.

Arranging (bringing about) deals in investments

Arranging (bringing about) deals in investments falls under the RAO, SI 2001/544, art 25(1) and consists of making arrangements for another person (whether as principal or agent) to:

  1. buy

  2. sell

  3. subscribe to, or

  4. underwrite

an investment that is a:

  1. security

  2. relevant investment

  3. Lloyd's syndicate capacity and syndicate membership, or

  4. rights to or interests in any of the above (excluding those under an occupational pension scheme or contract of insurance under SI 2001/544, art 60)

The activity of arranging deals in investments involves making arrangements that, when undertaken, have the direct effect of making the underlying transaction happen. This means that the arrangements 'bring about' the deal—so the activities have a material impact on whether the transaction occurs; the transaction would not occur without them. Examples of arranging (bringing about) deals in investments include:

  1. taking an order and passing

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