Part 1: Regulatory Framework Designated activities regime Section 8: Designated activities New section 71K: Designated activities
This new section of FSMA 2000 allows HM Treasury to specify an activity as a designated activity through secondary legislation.
	Subsections (1) and (2) empower HM Treasury to make designated activities regulations. These regulations enable HM Treasury to specify an activity as a "designated activity", bringing it into the regulation of new Part 5A of FSMA 2000.
	Subsection (3) stipulates that HM Treasury can only specify an activity is a designated activity if that activity is related or connected to either, the financial markets or exchanges of the United Kingdom, or to financial instruments, financial products or financial investments that are (or are proposed to be) issued or sold to, or by, persons in the United Kingdom.
	Subsection (4) is self-explanatory.
	Subsection (5) refers to Schedule 6B which is inserted into FSMA 2000 by section 8(9) of, and Schedule 3 to, this Act, which contains an illustrative, but non-exhaustive list of examples of the types of activity which HM Treasury intends to specify as designated activities. This is similar to Schedule 2 to FSMA 2000 which relates to regulated activities. Schedule 6B itself is inserted by subsection (9) of section 8.
	Subsection (6) clarifies that the contents of Schedule 6B in no way limits HM Treasury’s power to designate activities under this section.
	Subsection (7) clarifies that financial instruments, financial products and financial investments can include cryptoassets for the purpose of this section.