2. Financial Services

Question 1

What does ‘the solicitor accounting commission to the client’ mean?

Answer 1

Paying any commission earned over to the client.

Question 2

What does s.19(1) of FSMA 2000 (the general prohibition) indicate?

Answer 2

No person may carry on a ‘regulated activity’ or purport to do so unless:
- authorised; or
- exempt

Question 3

What does s.21(1) of FSMA 2000 (restrictions on financial promotion) indicate?

Answer 3

an un-authorised person cannot in the course of business engage in a ‘financial promotion’.

Question 4

What is a financial promotion?

Answer 4

To communicate and invitation or inducement to engage in investment activity.

Question 5

What does s.22(1) of FSMA 2000 (regulated activities) indicate?

Answer 5

Regulated activity if carried on:
* in business
* relates a specified investment
* relates to a specified activity
* no exclusion

Question 6

When will a regulated activity be exempt from the general prohibition?
CONTINUE

s.327 FSMA 2000

Answer 6

• no direction under s.328 or order under s.329 in force
• solicitor is a member of a profession
• solicitor account to client for any precuniary award or other advantage received from someone other than the client
• if it is incidental to provision of professional services