(This note is not part of the Order)

This Order specifies, for the purposes of the Financial Services and Markets Act 2000, which regulated activities are "PRA-regulated activities" and so are the regulated activities which are subject to prudential regulation by the Prudential Regulation Authority ("PRA"), rather than the Financial Conduct Authority.

Article 2 provides that the activities of accepting deposits and effecting or carrying out contracts of insurance are specified as PRA-regulated activities. Acting as a managing agent at Lloyd's and the arranging by the Society of Lloyd's of contracts of insurance written at Lloyd's are also PRAregulated activities.

The activity of dealing in investments as principal is a PRA-regulated activity only to the extent designated by the PRA under article 3. Designations relate to particular persons (rather than a class of person). Article 3 sets out the criteria which must be applied by the PRA in designating persons.

Article 4 sets out the procedure the PRA must follow when designating a person under article 3.

Article 5 requires the PRA to keep under review designations under article 3.

Article 6 enables the PRA to withdraw a designation and sets out the procedure for withdrawal.

Article 7 provides that a designation ceases to have effect if the person concerned ceases to have permission to carry on the activity of dealing in investment as principal.