Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

PERG 8.25 Advice must relate to an investment which is a security or contractually based investment

PERG 8.25.2GRP

Article 53(1)3 does not apply to advice given on any of the following:

  1. (1)

    deposit or other bank or building society accounts (but note the exceptions and points in PERG 8.25.3G)4;

  2. (2)

    interests under the trusts of an occupational pension scheme (but rights under an occupational pension scheme that is a stakeholder pension scheme will be securities);

  3. (3)

    mortgages or other loans (but note that advising on regulated mortgage contracts is a separate regulated activity under article 53A of the Regulated Activities Order – see the guidance in PERG 4 (Regulated activities connected with mortgages));

  4. (4)

    National Savings products;

  5. (5)

    foreign exchange (or cash);

  6. (6)

    commodities (for example, gold);

  7. (7)

    real estate;

  8. (8)

    any other physical property capable of having investment potential (for example, works of art, racehorses) unless investment is made through a collective investment scheme.

PERG 8.25.3GRP
  1. (1)

    4There are some circumstances in which giving advice about a deposit is a regulated activity.

  2. (2)

    Providing basic advice on a stakeholder product is a separate regulated activity under article 52A of the Regulated Activities Order. A stakeholder product includes a stakeholder deposit account. See the guidance in PERG 2.7.14AG (Providing basic advice on stakeholder products) for more about this.

  3. (3)

    Article 53(1) does apply to advice on structured deposits.