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Status: You are viewing the version of the handbook as on 2018-07-01.

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.