Legal Services - Financial Services Flashcards
Specified Activities
Advising, arranging, dealing as agent, managing and safeguarding (ADAMS)
Specified Investments
Most likely to be relevant are: F.M.DIPS (Funeral plans, Mortgage contracts, Debentures, Insurance contracts, Pension schemes and Shares in a company)
Advising on buying and selling LAND and NATIONAL SAVINGS PRODUCTS (e.g. premium bonds) is NOT a specified investment
Specified Activity + Specified Investment + Carried on by way of business = Regulated Activity
Therefore, must be regulated by the Financial Conducts Authority. If not, it is a criminal offence unless there is an exclusion
Carried on by way of business
I.e. as part of their legal work
Takeover Exclusion
Client is buying/selling 50% or more of the voting shares of a company or object of transaction regarded as taking control of daily running of company
Acting as trustee, nominee, personal representative exclusion
Can carry out a specified activity if this exclusion applies
‘Reasonably regarded as necessary’ exclusion
Regulated activity necessary part of providing the legal advice. Activity cannot be billed separately from the main legal advice
Exclusion
Relevant to whether there is a regulated activity at all. Many exclusions are not available to advising on insurance policies
Incidental Activities of Members of Designated Professional Bodies Exemption
Solicitor must be a member of the SRA and the financial service must be incidental to providing legal advice. Applies to advising on insurance products
Financial services which arise out of or are complementary to the legal services, provision is incidental to the provision of legal advice, solicitor does not receive compensation for this without accounting to the client for it
Insurance Distribution Activities
Must notify SRA, be put on list of providers by FCA and appoint an insurance distribution officer
Introducing or acting through an authorised person exclusion
Applies if solicitor introduces client to an authorised person or assists the client with acting on an authorised person’s advice
Not available if solicitor recieved any payment or commission from authorised person
Arranging
Making arrangements for another person to buy, sell or subscribe for a particular investment
Managing
Managing assets belonging to another person in circumstances which involve the exercise of discretion
Safeguarding
Adminstering or safeguarding (looking after)
Dealing as Agent
Buying, selling, subscribin for or underwriting investments as agent for a client
