Financial Services Flashcards
What are the exclusions available to the general prohibition in FSMA?
Takeover exclusion - solicitor can deals as agent, arrange or advise with respect to a client who is buying or selling more than 50% or more of the voting shares of a company or when the object of the transaction otherwise may be reasonably regarded as taking control of the daily running of a company
Acting as trustee, nominee or personal representative - A solicitor can advise, arrange, manage and safeguard investments when acting as a trustee, nominee or personal representative.
Introducing or acting through an authorised person - a solicitor can introduce a client to an authorised person in order for the client to receive advise. The solicitor may arrange or act as an agent with respect to the specified investment if the client received advice from the authorised person and the solicitor merely assists the client in acting on this advice. The exclusion is not available is the solicitor received any payment or commission from the authorised person which is not accounted for to the client.
Reasonably regarded as necessary - if the solicitor carry an activity (other than managing assets) in relation to specified investments that might otherwise be a regulated activity if the activity may reasonably be regarded as necessary part of providing the legal services. This exclusion cannot be used if the activity is billed separately from the main legal serviced
Incidental activities of members of designated professional bodies - if the solicitor provides financial services which arise out of or are complementary to legal services provided, the manner and scale of their provisions is incidental to the provision of legal advice and the solicitor does not receive compensation for this from anyone else without accounting to the client for it.
May be used if the reasonably regarded as necessary exclusion was not available due to the type of activity or if the solicitor was advising on insurance policy
None of the exclusions apply to insurance distributions activities.
