Specified Investments DO NOT INCLDUE:
- bank and building society accounts
- Cash ISAs
- land, options over land
- national savings products (including premium bonds)
- commercial borrowing
- occupational pensions
Specified Investment Regulated Activity Exclusions
* Check whether you are carrying * Each specified activity must be excluded;
out one or more of the activities therefore, the aim is to identify an
outlined above in your exclusion to exclude each specified
transaction. You will often find activity.
that one transaction involves at
least two activities.
Securities - Arranging deals in investments Arranging:
(Art. 25) – page 26 - through an authorised person (article 29)
- Advising (Art. 53) – page 27 making arrangements with a view to
- Managing (Art. 37) – page 27 transactions in investments); it does not
- Safeguarding and administering exclude the activity specified in article
investments (Art. 40) – page 28 25(1) (ie. arrangements bringing about
- Dealing as principal (Art. 14) – investments). Applies IF:
page 29 - Transaction entered into on advice given
- Dealing as agent (Art. 21) – page by authorised person; OR
29 - Client is execution-only client;
AND
- Solicitor accounts to client for any
pecuniary reward - page 32
- Introducing (article 33) applies if the
client is introduced to:
- An authorised person or an exempt
person;
- For the provision of independent advice -
page 33 and slide 81
General exclusions, arranging:
- Trustee Exclusion – page 33
- Professional / Necessary Exclusion
- Sale of a Body Corporate Exclusion
Advising:
General exclusions, advising:
- Trustee Exclusion – page 33
- Professional / Necessary Exclusion
- Sale of a Body Corporate Exclusion
Safeguarding and administering
- Trustee exclusion
- Professional / necessary Exclusion
Dealing in investments as principal
- Absence of holding out (article 15) – page
34
- Dealing in contractually based
investments (article 16)
- Trustee Exclusion – page 33
- Sale of a Body Corporate Exclusion
Dealing in investments as agent – page 35
- Authorised person
- Professional / Necessary Exclusion
- Sale of a Body Corporate Exclusion
Relevant - Advising (Art. 53) – page 27 Advising:
Investments - Arranging deals in investments General exclusions, advising:
(Art. 25) – page 26 - Trustee Exclusion – page 33
- Dealing as agent (Art. 21) – page - Professional / Necessary Exclusion
29 - Sale of a Body Corporate Exclusion
Arranging:
- through an authorised person (article 29)
making arrangements with a view to
transactions in investments); it does not
exclude the activity specified in article
25(1) (ie. arrangements bringing about
investments). Applies IF:
- Transaction entered into on advice given
by authorised person; OR
- Client is execution-only client;
AND
- Solicitor accounts to client for any
pecuniary reward - page 32
- Introducing (article 33) applies if the
client is introduced to:
- An authorised person or an exempt
person;
- For the provision of independent advice -
page 33 and slide 81
, General exclusions, arranging:
- Trustee Exclusion – page 33
- Professional / Necessary Exclusion
- Sale of a Body Corporate Exclusion
Dealing in investments as agent – page 35
- Authorised person
- Professional / Necessary Exclusion
- Sale of a Body Corporate Exclusion
Contractually Based - Managing (Art. 37) – page 27 As most of the exclusions considered below
Investments (e.g. - Safeguarding and administering do not apply to insurance contracts; it is
qualifying investments (Art. 40) – page 28 usually the case that where a contract of
contracts of - Dealing as principal (Art. 14) – insurance is involved, solicitors will either
insurance) page 29 need to seek authority from the FCA or be
in a position to claim the exemption under
section 327 FSMA – see chapter 5
Insurance distribution exemptions
Claims management on behalf of an insurer
(article 39B):
In order for this exclusion to apply:
- the solicitor must act in the course of
managing claims on behalf of an insurer,
and
- this activity must be carried on by the
solicitor in the course of carrying on any
profession or business.
Regulated mortgage - Arranging a regulated mortgage The two arranging activities in articles 25A(1)
contracts contract / varying the terms and (2) may be excluded by some or all of
(article 25A(1)) & making the following exclusions: - page 36
arrangements with a view to (1) The activities of arranging regulated
regulated mortgage contracts mortgage contracts (article 25A(1) and
(article 25A(2) – page 30 making arrangements with a view to
- Advising on a regulated regulated mortgage contracts (article
mortgage contract (article 53A) – 25A(2)) may be excluded
page 30 A. article 29 (deals with or through an
- Entering into a regulated authorised person exclusion). For
mortgage contract as a lender further details relating to this
(article 61) – page 30 exclusion see “which exclusions
- Administering a regulated exclude the activity of arranging deals
mortgage contract (article 61) – in investments” above.
page 30 B. article 66 (trustee exclusion).
Arrangements made by a solicitor
acting as trustee or personal
representative will be excluded if for
or with a view to a transaction which
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