Financial Services Flashcards
Who regulates firms & solicitors in ‘regulated activities’?
FCA
Who regulates firms in ‘exempt regulated activities’?
SRA
What is the primary legislation dealing with financial services?
FSMA 2000
Financial Services & Markets Act 2000
What is meant by the general prohibition?
The act contains a general prohibition that prevents businesses and individuals from carrying on certain regulated activities without authorisation or exemption
What happens if a business carries out regulated activities?
They commit a criminal offence
When will someone be classed as ‘authorised’
Where they have obtained authorisation from from appropriate regulator.
FCA is guided by 3 objectives in the Act what are they?
Consumer Protection
Integrity of financial systems
Prompting competition in the market
What is regulated activities?
General terms
Activities that can only be carried out by those with appropriate authorisation or exempt
What is the 3 components to regulated activities?
- An activity of a SPECIFIED kind
- Relates to a SPECIFIED investment
- Carried on by way of business
What are the 5 specified activities?
- Dealing in investments as agent
- Arranging deals in investments
- Managing investments
- Advising on investments
- Safeguarding and Administering investments
Can a solicitor give generic advice on investments
Yes - only if SPECIFIC advice is given will this be classed as specified activities
What are specified investments?
Stock & Shares
Debentures, loan stock & bonds
G’ment and public securities
Open ended investment companies
Insurance contracts
Regulated mortgage contracts
Home reversion & purchase plans
Deposits
Credit Agreements
What is excluded from specified investments?
Interests in land
National savings
What are the 5 exclusions relating to regulated activity?
Introducing an authorised person
Arranging or dealing with an ATP
Acting as a trustee, nominee or PR
Activities necessary in business
Activities in sale of a body of a corporate company where shares consist of 50% or more of voting shares
What does designated professional body mean?
A firm can carry on exempt regulated activities without being regulated by the FCA