(1) It is a prescribed requirement for the purposes of section 39(1)(a)(ii) of the Act that a contract between a principal and a representative must (unless it prohibits the representative from representing other counterparties) contain a provision enabling the principal to -

(a) impose such a prohibition; or

(b) impose restrictions as to the other counterparties which the representative may represent, or as to the types of investment in relation to which the representative may represent other counterparties.

(1A) [deleted]

(2) For the purposes of paragraph (1) a representative is to be treated as representing other counterparties where he -

(aa) he enters into investment transactions as agent (in circumstances constituting the carrying on of an activity of the kind specified by article 21 of the Regulated Activities Order) for other counterparties;