(This note is not part of the Regulations)
These Regulations define the term "stakeholder product" for the purposes of article 52B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544, as inserted by S.I. 2004/2737).
Regulation 4 provides that a deposit account will be a stakeholder product provided that it complies with certain requirements as to the minimum deposit, the time allowed for withdrawals, the interest payable, the frequency of withdrawals and the methods of making deposits.
Regulation 5 provides that units in a collective investment scheme will be a stakeholder product provided that the scheme complies with certain requirements set out in regulation 7.
Regulation 6 provides that rights in linked long-term contracts will be a stakeholder product provided that the fund held in respect of the contract complies with certain requirements set out in regulation 7 and, where the investment returns are smoothed, regulation 8.
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