What does the RAO specify regarding regulated activities?

The correct answer is that the RAO specifies the range of specified investments. The Regulated Activities Order (RAO) is a crucial piece of legislation that outlines what activities require regulation under the financial services framework. It defines various types of investments that fall under regulatory oversight, ensuring that firms and individuals involved in these investments are compliant with the rules set by the Financial Conduct Authority (FCA).

By clearly outlining what constitutes a regulated activity, the RAO helps protect consumers and maintain market integrity. This specification is vital for anyone operating in the financial sector, as it delineates the activities for which firms need to be authorized. Understanding this definition is key for compliance and regulatory purposes, as it informs firms about their obligations and the scope of their regulatory environment.