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* explanatory notes - section J
 

UK SIC 1992:
EXPLANATORY NOTES

Latest System
Update UKSIC2003

SECTION J FINANCIAL INTERMEDIATION

65 FINANCIAL INTERMEDIATION, EXCEPT INSURANCE AND PENSION FUNDING

This division includes:
- the activity of obtaining and redistributing funds other than for the purpose of insurance or pension funding or compulsory social security

NOTE:
- Credit card activities are classified according to type of operator

65.1 Monetary intermediation

This group includes:
- the obtaining of funds in the form of transferable deposits

65.11 Central banking

This class includes:
- monetary intermediation of the Bank of England

65.12 Other monetary intermediation
65.12/1 Banks

This subclass includes:
- monetary intermediation of banks other than the Bank of England

This subclass also includes:
- monetary intermediation of discount houses
- monetary intermediation of the National Savings Bank

65.12/2 Building societies

This subclass includes:
- monetary intermediation of building societies

This subclass excludes:
- activities of specialist mortgage finance companies cf. 65.22/3
- activities of housing associations cf. 70.11, 70.20/9


65.2 Other financial intermediation

This group includes:
- financial intermediation other than that conducted by banks and building societies
65.21 Financial leasing

This class includes:
- leasing where the term approximately covers the expected life of the asset and the lessee acquires substantially all the benefits of its use and takes all the risks associated with its ownership, and the lessee's rental payments virtually cover the whole of the purchase price of the asset. The asset may or may not eventually be transferred

This class excludes:
- operating leasing cf. 71 according to type of goods leased


65.22 Other credit granting
65.22/1 Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors

This subclass includes:
- activities of non-deposit taking finance houses
- activities of hire purchase and loan companies not in the UK banking sector
- activities of check traders
- activities of money lenders
- pawnbroking where the primary activity is in lending money
- activities of building societies' personal finance subsidiaries
- other consumer credit granting where the main business is the direct financing (other than finance leasing) of instalment credit sales mainly to persons, together with farm, industrial and building plant equipment to unincorporated businesses

This subclass excludes:
- activities of pawn shops where the primary activity is in dealing in second-hand goods cf. 52.50
- financial leasing cf. 65.21
- operating leasing cf. 71


65.22/2 Factoring

This subclass includes:
- activities of companies specialising in debt factoring and invoice discounting

65.22/3 Activities of mortgage finance companies

This subclass includes:
- activities of specialist mortgage finance companies other than banks and building societies

65.22/4 This code is no longer in use
65.22/9 Other credit granting not elsewhere classified

This subclass includes:
- activities of banking institutions in the Channel Islands and the Isle ofMan not included in the UK banking sector
- activities of other institutions not in the UK banking sector whose main activity is to extend credit abroad
- activities of other special finance agencies and export credit companies

65.23 Other financial intermediation not elsewhere classified

This class includes:
- other financial intermediation primarily concerned with distributing funds other than by making loans

65.23/1 Activities of investment trusts

This subclass includes:
- activities of investment trust companies recognised as such by the Inland Revenue for tax purposes
- activities of investment funds authorised by the Channel Islands and the Isle of Man authorities

65.23/2 Activities of unit trusts and property unit trusts

This subclass includes:
- activities of unit trusts authorised by the Securities and Investment Board under the terms of the Financial Services Act 1986
- activities of property unit trusts
- activities of open-ended unit trusts authorised by the Channel Islands and the Isle of Man authorities
- activities of unauthorised unit trusts such as "in-house" trusts (i.e. funds run on unit trust lines by, for example, stockbrokers and merchant banks which are designed for their own clients)

65.23/3 Security dealing on own account

This subclass includes:
- dealing for own account by securities dealers
- activities of gilt-edged market makers
- activities of Stock Exchange money brokers
- activities of inter-dealer brokers
- dealing in financial futures, options and other derivatives for own account

This subclass excludes:
- security and other dealing on behalf of others cf. 67.12


65.23/4 Activities of bank holding companies

This subclass includes:
- activities of holding companies which are not themselves part of the UK banking sector and whose main subsidiaries are UK banks

This subclass excludes:
- activities of other financial holding companies cf. 65.23/9
- activities of non-financial holding companies cf. 74.15


65.23/5 Activities of venture and development capital companies

This subclass includes:
- activities of venture and development capital companies and funds

65.23/6 This code is no longer in use

65.23/9 Financial intermediation not elsewhere classified

This subclass includes:
- activities of non-specific financial holding companies

This subclass excludes:
- activities of bank holding companies cf. 65.23/4
- trade, leasing and renting of property cf. 70
- management activities of non-financial holding companies cf. 74.15


66 INSURANCE AND PENSION FUNDING, EXCEPT COMPULSORY SOCIAL SECURITY

66.0 Insurance and pension funding, except compulsory social security

This group includes:
- long and short term risk spreading with or without a savings element
66.01 Life insurance

This class includes:
- life insurance and life reinsurance, with or without a substantial savings element, including life insurance undertaken by corporate and quasi-corporate insurers such as Lloyd's underwriting syndicates

66.02 Pension funding

This class includes:
- the provision of retirement incomes

This class excludes:
- non-contributory schemes where the funding is largely derived from public sources cf. 75.12
- compulsory social security schemes cf. 75.30


66.03 Non-life insurance

This class includes:
- insurance and reinsurance of non-life business, including non-life insurance undertaken by corporate insurers and quasi-corporate insurers such as Lloyd's underwriting syndicates:
. accident, fire
. health
. property
. motor, marine, aviation, transport
. pecuniary loss and liability insurance

67 ACTIVITIES AUXILIARY TO FINANCIAL INTERMEDIATION

This division includes:
- provision of services involved in or closely related to financial intermediation, but not themselves involving financial intermediation

67.1 Activities auxiliary to financial intermediation, except insurance and pension funding

67.11 Administration of financial markets

This class includes:
- operation and supervision of financial markets other than by public authorities:
. activities of stock exchanges
. activities of other bodies that regulate or supervise the financial markets, including exchanges for commodity future contracts

67.12 Security broking and fund management
67.12/1 Fund management activities

This subclass includes:
- portfolio management services provided by fund managers on behalf of clients, including decisions about the content of the portfolios

This subclass excludes:
- security dealing on own account cf. 65.23/3


67.12/2 Security broking and related activities

This subclass includes:
- dealing in financial markets on behalf of others (e.g. stock broking) and related activities other than fund management

This subclass excludes:
- security dealing on own account cf. 65.23/3


67.13 Activities auxiliary to financial intermediation not elsewhere classified

This class includes:
- activities auxiliary to financial intermediation not elsewhere classified:
. mortgage brokers
. bureaux de change, etc.

67.2 Activities auxiliary to insurance and pension funding

67.20 Activities auxiliary to insurance and pension funding

This class includes:
- activities involved in or closely related to insurance and pension funding other than financial intermediation:
. activities of insurance agents
. activities of insurance brokers
. activities of insurance risk and damage evaluators
. activities of Lloyd's underwriting brokers; and of managing and underwriting agents of Lloyd's syndicates


Explanatory Notes
Section I
Contents Page Explanatory Notes
Section K

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This page last revised: Friday, 20 December 2002

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