For the purposes of Part VI of the Financial Services and Markets Act 2000 (www.practicallaw.com/7-107-5760) (FSMA), anything which is a transferable security for the purposes of the Markets in Financial Instruments Directive (MiFID) (www.practicallaw.com/0-200-9292) other than money-market instruments for the purposes of that directive which have a maturity of less than 12 months (section 102A(3), FSMA). Article 4.1(18) of MiFID contains the definition of transferable securities. This definition covers those classes of securities which are negotiable on the capital market (except instruments of payment), such as:
Shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares.
Bonds or other forms of securitised debt, including depositary receipts in respect of such securities.
Any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures.
For the purposes of the FCA Handbook (www.practicallaw.com/5-107-6609), the glossary to the FCA Handbook sets out the full definition of this term. When considering this term in the context of financial services, reference should be made to the FCA Handbook glossary definition of transferable security.