This Chapter has been extracted from the ONS Explanatory Notes and provides a more detailed explanation of possible activities that could fall within the SIC Codes related to the Chapter.
This division includes the activities of obtaining and redistributing funds other than for the purpose ofinsurance or pension funding or compulsory social security.
Note: National institutional arrangements are likely to play a significant role in determining the
classification within this division.
64.1 Monetary intermediation
This group includes the obtaining of funds in the form of transferable deposits, i.e. funds that are fixed in money terms, obtained on a day-to-day basis and, apart from central banking, obtained from non-financial sources.64.11 Central banking
This class includes:- issuing and managing the country's currency
- monitoring and control of the money supply
- taking deposits that are used for clearance between financial institutions
- supervising banking operations
- holding the country's international reserves
- acting as banker to the government
The activities of central banks will vary for institutional reasons.
64.19 Other monetary intermediation
This class includes the receiving of deposits and/or close substitutes for deposits and extending of credit or lending funds. The granting of credit can take a variety of forms, such as loans, mortgages, credit cards etc. These activities are generally carried out by monetary institutions other than central banks, such as:- banks
- building societies
- savings banks
- credit unions
This class also includes:
- postal giro and postal savings bank activities
- credit granting for house purchase by specialised deposit taking institutions
- money order activities
This class excludes:
- credit granting for house purchase by specialised non-depository institutions, see 64.92
- credit card transaction processing and settlement activities, see 66.19
64.19/1 Banks
This subclass includes only:
- monetary intermediation by those institutions other than the Bank of England, authorised
by the Financial Services Authority under the Banking Act of 1987 to accept deposits in
the UK
- monetary intermediation by those European authorised institutions which are entitled to
accept deposits through a branch in the UK on the basis of their home state authorisation
- monetary intermediation of the National Savings Bank
- monetary intermediation of the Savings Certificate Office
64.19/2 Building societies
This subclass includes:
- monetary intermediation by those institutions authorised by the Financial Services
Authority under the Building Societies Acts of 1986 and 1997
This subclass excludes:
- activities of specialist mortgage finance companies see 64.92/2
- activities of housing associations see 41.10, 68.20/1
64.2 Activities of holding companies
64.20 Activities of holding companies
This class includes the activities of holding companies, i.e. units that hold the assets (owning controlling- levels of equity) of a group of subsidiary corporations and whose principal activity is owning the group.
The holding companies in this class do not provide any other service to the businesses in which the
equity is held, i.e. they do not administer or manage other units.
This class excludes:
- active management of companies and enterprises, strategic planning and decision making of the
company, see 70.10
64.20/1 Activities of agricultural holding companies
64.20/2 Activities of production holding companies
64.20/3 Activities of construction holding companies
64.20/4 Activities of distribution holding companies
64.20/5 Activities of financial services holding companies
64.20/9 Activities of other holding companies (not including agricultural, production, construction, distribution and financial services holding companies) n.e.c.
64.3 Trusts, funds and similar financial entities
64.30 Trusts, funds and similar financial entities
This class includes legal entities organised to pool securities or other financial assets, without managing, on behalf of shareholders or beneficiaries. The portfolios are customised to achieve specific investment characteristics, such as diversification, risk, rate of return, and price volatility. These entities earn interest, dividends, and other property income, but have little or no employment and no revenue from the sale of services.
This class includes:
- open-end investment funds
- closed-end investment funds
- trusts, estates or agency accounts, administered on behalf of the beneficiaries under the terms of a trust agreement, will or agency agreement
- unit investment trust funds
This class excludes:
- funds and trusts that earn revenue from the sale of goods or services, see SIC class according to
their principal activity
- activities of holding companies, see 64.20
- pension funding, see 65.30
- management of funds, see 66.30
64.30/1 Activities of investment trusts
This subclass includes only:
- those investment trust companies recognised as such by the Inland Revenue for tax purposes
64.30/2 Activities of unit trusts
This subclass includes only:
- activities of unit trusts authorised by the Financial Services Authority under the terms of the Financial Services Act 1986 and 2000
- activities of unauthorised unit trusts such as "in-house" trusts (i.e. funds run on unit trust lines by, e.g., stockbrokers and merchant banks which are designed for their own clients)
64.30/3 Activities of venture and development capital companies
This subclass includes:
- activities of venture and development capital companies and funds
This subclass excludes:
- activities of venture capital investment trusts, see 64.30/1
- activities of authorised and unauthorised unit trusts, see 64.30/2
- activities of open-ended investment companies, see 64.30/4
64.30/4 Activities of open-ended investment companies
This subclass includes only:
- open-ended investment companies authorised by the Financial Services Authority under
the Open-Ended Investment Companies (Companies with Variable Capital) Regulations
64.30/5 Activities of property unit trusts
Property Unit Trusts have an open-ended share capital structure and hold, manage and maintain real estate portfolios (which could consist of a single property), for investment purposes (for renting to tenants), but could also be used to hold property for development or under construction. Units in these vehicles are typically traded through the fund manager and are not traded on a stock exchange.
64.30/6 Activities of real estate investment trusts
Real Estate Investment Trust Vehicles are companies with closed-ended share capital that mainly hold, manage and maintain real estate portfolios, for investment purposes (for renting to tenants) and whose shares are listed and traded on a stock exchange.
64.9 Other financial service activities, except insurance and pension funding
This group includes financial service activities other than those conducted by monetary institutions
This group excludes:
- insurance and pension funding, see division 65
64.91 Financial leasing
This class includes:
- leasing where the term approximately covers the expected life of the asset and the lessee acquires
substantially all the benefits of its use and takes all the risks associated with its ownership. The
ownership of the asset may or may not eventually be transferred. Such leases cover all or virtually all
costs including interest.
This class excludes:
- operational leasing, see division 77, according to type of goods leased
64.92 Other credit granting
This class includes:
- financial service activities primarily concerned with making loans by institutions not
involved in monetary intermediation, where the granting of credit can take a variety of forms, such as loans, mortgages, credit cards etc. providing the following types of services:
• granting of consumer credit
• international trade financing
• provision of long-term finance to industry by industrial banks
• money lending outside the banking system
• credit granting for house purchase by specialised non-depository institutions
• pawnshops and pawnbrokers where the principal activity is lending money
This class excludes:
- credit granting for house purchase by specialised institutions that also take deposits, see 64.19
- operational leasing, see division 77, according to type of goods leased
- grant giving activities by membership organisations, see 94.99
- pawnshops and pawnbrokers where the principal activity is dealing in second hand goods, see 47.79/2
64.92/1 Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors
This subclass includes only:
- activities of non-deposit taking finance houses
- activities of hire purchase and loan companies not in the UK banking sector
- activities of check traders
- activities of money lenders
- pawnbroking where the primary activity is in lending money
- activities of building societies' personal finance subsidiaries
- other consumer credit granting where the main business is the direct financing (other than finance leasing) of instalment credit sales mainly to persons, together with farm, industrial and building plant equipment to unincorporated businesses
This subclass excludes:
- activities of pawn shops where the primary activity is dealing in second-hand goods, see 47.79/2
- financial leasing, see 64.91
- operating leasing, see 77
64.92/2 Activities of mortgage finance companies
This subclass includes only:
- activities of specialist mortgage finance companies other than banks and building societies
64.92/9 Other credit granting (not including credit granting by non-deposit taking finance houses and other specialist consumer credit grantors and activities of mortgage finance companies) n.e.c.
This subclass includes:
- activities of other institutions not in the UK banking sector whose main activity is to extend credit abroad
- activities of other special finance agencies and export credit companies
64.99 Other financial service activities, except insurance and pension funding, n.e.c.
This class includes:
- other financial service activities primarily concerned with distributing funds other than by making loans:
64.99/1 Security dealing on own account
This subclass includes:
- dealing for own account by securities dealers
- activities of Stock Exchange money brokers
- activities of inter-dealer brokers
- dealing in financial futures, options and other derivatives for own account
- dealing in commodities for investment purposes
This subclass excludes:
- security and other dealing on behalf of others, see 66.12
64.99/2 Factoring
This subclass includes:
- activities of companies specialising in debt factoring and invoice discounting
This subclass excludes:
- bill collection without debt buying up, see 82.91
64.99/9 Other financial service activities, except insurance and pension funding, (not including security dealing on own account and factoring) n.e.c.
This subclass includes:
- activities of underwriters of stock and share issues
- securitisation activities
- writing of swaps, options and other hedging arrangements
- activities of viatical settlement companies
This subclass excludes:
- activities of financial holding companies, see 64.20/5
- trade, leasing and renting of real estate property, see 68
- financial leasing, see 64.91
- management activities of non-financial holding companies, see 64.20
- grant-giving activities by membership organisations, see 94.99
For all queries related to this Chapter or any other aspect of SIC Codes, please contact the Office of National Statistics on 01329 444970 or email classifications.helpdesk@ons.gov.uk.