Which of the following is NOT considered a specified investment under MIFID?

The correct identification of what constitutes a specified investment under MIFID (Markets in Financial Instruments Directive) is critical for understanding investment regulations. Specified investments typically include financial instruments such as shares, bonds, and derivatives, which are subject to regulatory oversight.

In this scenario, tangible assets, such as physical goods or properties, do not fall under the definition of specified investments within MIFID. These assets are not financial instruments and therefore are not subject to the same regulatory framework as securities or derivatives. MIFID focuses primarily on the trading and investment in financial instruments that are actually traded in financial markets.

Other options, like peer-to-peer lending agreements, regulated residential mortgages, and CFDs (cash settled contracts), are considered specified investments because they involve transactions in financial instruments or financial services that are regulated under MIFID. Peer-to-peer lending involves the facilitation of loans between individuals, often utilizing a platform which brings together lenders and borrowers, thus falling within regulatory scrutiny. Regulated residential mortgages are also financial products subject to extensive regulation. CFDs are derivatives that allow traders to speculate on price movements, which are inherently financial instruments governed by MIFID rules.

Understanding the definitions and categories of investments under MIFID helps clarify the regulatory landscape, ensuring compliance