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Status: You are viewing the version of the handbook as on 2005-06-30.

AUTH 7.2 Introduction

Exclusion for advice given in certain publications and services

AUTH 7.2.1G

Advice is excluded by article 54 of the Regulated Activities Order from the regulated activities of advising on investments and advising on regulated mortgage contracts if:1

  1. (1)

    the advice is given in a publication or service that is in one of three formats (see AUTH 7.4.3 G and AUTH 7.4.4 G); and

  2. (2)

    the principal purpose of the particular format is neither to give certain advice nor to lead to (or enable) certain transactions to be carried out (see AUTH 7.4.5 G and AUTH 7.4.10 G).1

Certificate that the exclusion applies

AUTH 7.2.2G

If a person would, but for the exclusion, be carrying on the regulated activities of advising on investments or advising on regulated mortgage contracts, or both, and will be doing so as a business in the United Kingdom (see AUTH 7.3), he may wish to apply to the FSA for a certificate that the exclusion applies (see AUTH 7.6). However, a person does not need a certificate to get the benefit of the exclusion. In many cases it will be clear that the exclusion in article 54 applies and a certificate is not called for. A certificate may be appropriate, however, where the exclusion appears to apply but there may be an element of doubt. The granting of a certificate would remove any such doubt.1

Certificates under the Financial Services Act 1986

AUTH 7.2.3G

Certificates given under paragraph 25 of Schedule 1 to the Financial Services Act 1986 (Exclusion for periodical publications giving investment advice) do not have effect after 1 December 2001. Holders of such certificates must consider their position under the terms of the new exclusion. If a person considers that a certificate might be appropriate, a new application must be made.