In the context of FCA regulation, what does the term 'specified investment' refer to?

The term 'specified investment' refers to investments that are explicitly defined within the framework of the Regulated Activities Order. This categorization is crucial for regulatory purposes, as it helps to delineate which financial instruments fall under the jurisdiction of the FCA and are subject to specific regulatory standards. Specified investments typically include a range of financial products such as shares, debentures, units in collective investment schemes, and certain types of derivatives.

By outlining these investments, the Regulated Activities Order ensures that both firms and individuals engaging in these activities adhere to the required regulatory practices, thereby protecting consumers and maintaining market integrity. This definition provides clarity and consistency in the application of the rules and helps financial service providers understand their obligations concerning these investments.

The other options reference aspects that do not capture the precise definition established in regulatory context. For instance, investments traded on global exchanges may fall into various categories and are not limited to those described under the Regulated Activities Order. Similarly, investments requiring specific regulatory approval could apply to a broad range of products beyond just those classified as specified investments. Finally, while investments held by professional investors are important in the context of market activities, the term 'specified investment' is not limited to this group. Thus, focusing on the Regulated Activities