Which of the following is excluded from FSMA 2000 activities?

The correct answer is based on the understanding that principal dealing refers to the buying and selling of securities by a firm for its own account, rather than on behalf of clients. Under the Financial Services and Markets Act 2000 (FSMA 2000), certain activities are specifically regulated, especially those related to the managing, dealing in, or operating trading facilities for third parties.

Principal dealing is generally treated as a separate activity that does not fall under the regulatory activities explicitly outlined in FSMA 2000. This statute primarily governs activities that involve acting on behalf of clients or managing client funds, which are more closely associated with investor protection and market integrity.

In contrast, operating a multilateral trading facility, managing investments, and dealing in investments directly involve client interactions or the management of client assets, all of which are integral components of the regulatory framework established by FSMA 2000. Thus, these activities are included under its regulatory scope due to the need for consumer protection and oversight in the financial marketplace.