Financial Services Flashcards
Under the General Prohibition of the FSMA 2000, solicitors may not carry on what type of activity under the Act?
Regulated activity
A regulated activity is an activity specified under the FSMA 2000 (RA) Order 2001 relating to an _________ specified under the Order carried on in the _____ __ _______, and to which no _______ applies
investment, course of business, exclusion
Give five examples of regulated activities
Advising
Dealing as an agent
Arranging
Managing
Safeguarding
(remember: ADAMS)
Specified investments include which six examples?
Funeral Plans
Mortgage contracts
Debentures
Insurance contracts
Pension schemes
Shares in a company
(remember: FM DIPS)
What are the 4 exclusions that may apply to the general prohibition?
- Takeover exclusion
- Acting as a trustee, nominee, or PR
- Introducing or acting through an authorised person
- Necessary exclusion
An excluded activity from the Regulated Activities order includes:
Safeguarding a client’s investment when acting as a what 2 things?
- Trustee; or
- Personal representative
An excluded activity from the Regulated Activities order includes:
Advising a client, acting as their agent, or arranging for the purchase or sale of control of a ______ (also known as the ________ exclusion)
company, takeover
An excluded activity from the Regulated Activities order includes:
__________ a client to a person authorised by the ___ to give financial advice
introducing, FCA
An excluded activity from the Regulated Activities order includes:
whilst acting as a PR of an estate, ________ the PR on the merits of holding or selling specific _____ _____ in order to pay the estate’s _________ for no additional compensation
advising, company shares, beneficiaries
Under the necessary exclusion, an activity will be excluded if carrying it out is a __________ part of ____ _______ being provided by the solicitor, and they don’t bill for the activity separate from the legal services
necessary, legal services
Which two activities/investments do the necessary exclusion not apply to?
- Managing assets
- Insurance policies
What is the authorised persons exclusion?
Where a solicitor can arrange or act as agent with respect to specified investments if the client receives advice from a person authorised by the FCA (e.g. a stockbroker) and the solicitor merely assists the client in acting on this advice
Does the authorised persons exclusion apply where the solicitor receives payment from the authorised person?
No
Under the Designated Professional Bodies Exemption, S’s activities will be exempt if the activity is ___________ to the legal advice given and to the work of the firm as a whole
incidental
