Glossary Definition

 

 

ancillary service
FCAPRA
7273(A) In the PRA Handbook:

any of the services listed in Section B of Annex I to MiFID, that is:
(a) safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
(b) granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
(c) advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
(d) foreign exchange services where these are connected to the provision of investment services;
(e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
(f) services related to underwriting; and
(g) investment services and activities as well as ancillary services within (a) to (f), above, related to the underlying of the derivatives included under Section C - 5, 6, 7 and 10, that is (in accordance with that Annex and Recital 21 to, and Article 39 of, the MiFID Regulation):
(i) commodities;
(ii) climatic variables;
(iii) freight rates;
(iv) emission allowances;
(v) inflation rates or other official economic statistics;
(vi) telecommunications bandwidth;
(vii) commodity storage capacity;
(viii) transmission or transportation capacity relating to commodities, where cable, pipeline or other means;
(ix) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
(x) a geological, environmental or other physical variable;
(xi) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
(xii) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
where these are connected to the provision of investment services or ancillary services.

[Note: article 4(1)(3) of MiFID](B) In the FCA Handbook:

(1) (except in CONC)10 any of the services listed in Section B of Annex I to MiFID, that is:
(a) safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
(b) granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction;
(c) advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings;
(d) foreign exchange services where these are connected to the provision of investment services;
(e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
(f) services related to underwriting; and
(g) investment services and activities as well as ancillary services within (a) to (f), above, related to the underlying of the derivatives included under Section C - 5, 6, 7 and 10, that is (in accordance with that Annex and Recital 21 to, and Article 39 of, the MiFID Regulation):
(i) commodities;
(ii) climatic variables;
(iii) freight rates;
(iv) emission allowances;
(v) inflation rates or other official economic statistics;
(vi) telecommunications bandwidth;
(vii) commodity storage capacity;
(viii) transmission or transportation capacity relating to commodities, where cable, pipeline or other means;
(ix) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
(x) a geological, environmental or other physical variable;
(xi) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
(xii) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
where these are connected to the provision of investment services or ancillary services.

[Note: article 4(1)(3) of MiFID]
10(2) (in CONC) a service that relates to entering into a regulated credit agreement as lender and includes, in particular, an insurance or payment protection policy.