Financial Services Flashcards
What is the general prohibitions on providing financial services under the FSMA?
No person may carry on REGULATED ACTIVITY unless authorized or EXEMPT
What are regulated activities under the FSMA
Specified Activity + Specified Investment + In the course of business + No EXCLUSION applies
What are “specified activities” under the FSMA?
Advising
Dealing as an agent
Arranging
Managing
Safeguarding
What are “specified investments” under the FSMA?
F.M. DIPS
Funeral plans
Mortgage contracts
Debentures
Insurance contracts
Pension schemes
Shares in a company
NOT: Land or National Savings Products
What are the EXCLUSIONS to regulated activities under FSMA?
Takeover exclusion
Acting as a trustee, nominee, or personal rep
Acting through an authorized person
Providing necessary activities
What are the EXEMPTIONS to providing regulated activities?
Member of the SRA + Providing an incidental activity
- Solicitor must not receive compensation unless account for to client
What is the “Designated Professional Bodies” Exemption
A solicitor will be exempted from providing financial services if:
- The services are complementary to their legal services provided,
- The manner and scale of their provision 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,
