Financial Services and Markets Act

Question 1

What crap do you need to know about the Financial Services and Markets Act?

Answer 1

That solicitors cannot undertake regulated activities for regulated investments, over the course of business, without an exemption or exception

Question 2

What are the regulated activities?

Answer 2

Advising, arranging, dealing as agent, managing, safeguarding

Question 3

What are the regulated investments?

Answer 3

Shares, securities (including mortgages and debentures), insurance contracts, pension schemes, funeral plans

Question 4

What are the exceptions?

Answer 4

1. Takeover of a company
2. Acting as a trustee, nominee or personal representative
3. Introducing to or acting on behalf of a FCA authorised person, without any referrals or payments, and NOT in relation to insurance contracts
4. Where insurance contracts are necessary to provision of legal services, and this is not billed separately

Question 5

Is it OK if a solicitor does the regulated activities for regulated investments in their personal capacity?

Answer 5

Yes, as long as it’s not in the course of business

Question 6

What about law firms with a corporate focus?

Answer 6

There is an exemption where the provision of financial services is incidental to the law firm’s work as a whole, and to the particular matter, and the law firm doesn’t benefit financially from that activity