BKM207600 | Bank compensation restriction: definition of banking company: excluded companies: asset management including pension schemes and investment trusts

CTA09/S133F(2)(c),(d) & (e)

Asset management companies are also excluded companies and outside the scope of the compensation restriction. Asset management companies include the following types of business:

Pension scheme manager

A company is an excluded company if it only carries on relevant regulated activities as a manager of a pension scheme.

Investment trusts

A company is an excluded company if it an investment trust for corporation tax purposes.

Asset management

A company is an excluded company if the only relevant regulated activities it carries on are ‘asset management activities’ .

Other

The exclusions for pension scheme managers and companies carrying on asset management activities are expanded if the company has a second line of business other than deposit taking and:

• the company’s activities in that line of business would not, on their own, result in it being an FCA investment firm that meets the condition in CTA09/S133H(1B) if it only carried on this second line of business and the relevant conduct occurred on or after 1 January 2022

• the company’s activities in that line of business would not, on their own, result in it being both an IFPRU 730K firm and a full scope IFPRU investment firm if it only carried on this second line of business and the relevant conduct occurred between 1 January 2014 and 31 December 2021

• the company’s activities in that line of business would not, on their own, result in it being both an BIPRU 730K firm and a full scope BIPRU investment firm if it only carried on the second line of business and the relevant conduct occurred before 1 January 2014