Financial services (or investment business) can be a bit of a minefield. The Financial Services and Markets Act 2000 (FSMA) allows firms to conduct investment business, only if they are regulated by either:
- The Financial Conduct Authority (FCA) or they become an appointed representative of another FCA firm.
- A Designated Professional Body (DPB) such as ICAS, under Part XX of the Act.
Firms cannot be licensed by a Designated Professional Body and authorised by the FCA.
The DPB status allows ICAS to license accountancy firms to carry out certain restricted "exempt regulated activities" without the need to be authorised by the Financial Conduct Authority (FCA). Examples include advising on private company shares, commenting on advice given to a client by an authorised third party or attending meetings between the client and the third party. However what a DPB licensed firm can and can't do can be complicated and you are advised to read on.
If a member performed these activities without a licence from ICAS, or authorisation from the FCA, they would be in breach of FSMA.
