Exam (elaborations)
PSC Finance and Business Skills Exam Notes 2024 (Distinction) Best of all
- Course
- Institution
PSC Finance and Business Skills Exam Notes 2024 (Distinction)
[Show more]
1 review
By: alexandrawalker • 1 year ago
Content preview
lOMoARcPSD|17572840PSC Notes - Financial and Business Skills
Financial Regulation andCompliance (BPP University)
, lOMoARcPSD|17572840
QUESTION 1
No person may carry on a regulated activity in the UK unless authorised or exempt (s19 FSMA). Need to ensure
that the firm is not committing a criminal offence by carrying out a regulated activity without authority
pursuant to S 23 FSMA, so we need to consider the effect of FSMA.
1. Are you in Business?
a. For an activity to be a regulated activity under FSMA, it must be “carried on by way of business”. As the firm
is providing a service for the client, it is in business for FSMA purposes.
2. Are there any specified investments?
a. A specified investment is one that has been specified as such by the RAO. The specified investments involved
in this scenario include: [list and relate to facts]
b. The following are not considered to be specified investments [list and relate to facts]
Type of Investment Associated activity
• Advising – giving advice to client
Category of
• Arranging – helping client to buy or sell
Investment
• Dealing – Solicitor is doing the act
• Shares 1. Arranging deals in investments
• Bonds and debentures • Applies to securities and relevant investments.
• Gilts • Solicitor facilitates client to buy / sell security or relevant
• Warrants investment or makes arrangement with a view to deal (i.e.
• Units in a unit trust / OEIC completing stock transfer form or put in touch with
• Stakeholder and personal pension stockbroker)
(not an occupational pension)
2. Advising on investment
• Applies to securities and relevant investments.
• Advising a person on merits of buying / selling securities or
relevant investments.
• Advice must be specific – generic advice not caught (i.e. just
advice to invest in shares).
• if giving generic advice solicitor must comply with SRA codes
3. Managing investments
• Applies to security or contractually based investment
• Solicitor does not own the property, but client gives the
solicitor sole discretion to manage the portfolio (usually
Securities where s is trustee or PR)
4. Safeguarding and administering investments
• Applies to securities or contractually based investments
• Solicitor needs to be controlling the securities (i.e. custody of
share certificate,) and doing something else (i.e. dealing with
dividend income, voting at GM, letterbox)
5. Dealing as principal
• Applies to securities or contractually based investments
• Solicitor needs to be buying in their own name as principal
(they own the legal title)
• usually occurs where trustee or PR – VERY RARE
6. Dealing as agent
• Applies to securities and relevant investments
• Usually mistake – acting in solicitors name but behalf of
client (e.g. where stockbroker addresses contract note to
solicitor)
, lOMoARcPSD|17572840
• ALL Insurance contracts (including See Securities for potential activities which might apply
both qualifying and non-qualifying)
• Options FOR INSURANCE DISTRIBUTION ACTIVITIES (insurance products)
• Futures 1. Arranging on insurance contract
• Contracts for difference Making arrangements which lead to client acquiring/ disposing
• Rights under funeral plan contracts insurance \(i.e. referring to insurance broker)
2. Advising on insurance contract
Advising on the merits of acquiring / surrendering insurance
Relevant
Investments
3. Dealing in insurance as agent
Enter into insurance contract on client’s behalf
4. Assisting in the administration and performance of a contract
of insurance
Helping client make a claim under a policy / get a pay-out
Applies to all stages of work with an actual insurance contact (i.e.
from getting quote to defending claim of insurance)
• Qualifying contracts of Insurance See Securities for potential activities which might apply
(whole life, endowment, annuity)
• Options See note on Insurance Distribution Activities which might apply
Contractually
• Futures
Based Investments
• Contracts for difference
• Rights under funeral plan contracts
Three conditions to be met for 1. Arranging RMC
mortgage to be RMC: Arranging for person to:
1. First Charge over borrower’s enter into the RMC / vary the terms of existing RMC or
dwelling making arrangements with a view to RMC (i.e. referring to
2. More than 40% of area mortgage broker)
residential (mixed use)
3. Borrower must live in the 2. Advising on RMC
property Must be giving specific advice on the merits of:
Regulated (so does not cover buy to let / entering into RMC or
Mortgage commercial or second mortgages) vary terms of a particular RMC
Contracts
3. Entering into an RMC as Lender
Typically requires solicitor to lend money to buyer – very
rare. But possible if solicitor acting as trustee.
4. Administering RMC
Typically acting for a lender -requires notifying borrower
of changes or collecting / recovery of money due from
borrower
Regulated home • Equity release and home reversion 1. Arranging on home reversion / home purchase plans /
finance • Sharia finance sale and rent back
transactions • Sale and repurchase agreements
2. Advising on home reversion / home purchase plans / sale
and rent back
3. Entering into as lender on home reversion / home
purchase plans / sale and rent back
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FreeDocument. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now