FSMA

Question 1

what does ‘incidental’ under s.327 mean?

Answer 1

A regulated activity forms only a small proportion of the firm’s work.

Question 2

FSMA Tree?

Answer 2

Specified investment?
Specified activity?
Exclusion?
Exempt regulated?

Question 3

Exempt regulated?

Answer 3

Satisfy s.327 and SRA Scope Rule 4

If meet both –> no need for authorisation.

Question 4

What must be borne in mind when considering the excisions?

Answer 4

Are you carrying out an IMD?

If so, exclusion may not apply due to Art 4A.

Question 5

What is not prohibited?

Answer 5

giving generic advice in relation to investments.

Question 6

SRA Scope Rules

Answer 6

Check list of prohibited activities at s.3

Question 7

Step 4 of FSMA Tree?

Answer 7

Check around the Scope Pages.

Question 8

Dealing as principal? As agent?

Answer 8

Trustee = principal

power of attorney = agent.

Question 9

If all the FSMA conditions are complied with, can you always act?

Answer 9

NO, consider O(1.4) and O(1.5) - do you have requisite level of skill and competence?