Advising on basic stakeholder products, investments, pension transfers and loan-based crowdfunding agreements
Advising on basic stakeholder products, investments, pension transfers and loan-based crowdfunding agreements

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Advising on basic stakeholder products, investments, pension transfers and loan-based crowdfunding agreements
  • Providing basic advice to retail consumers on stakeholder products
  • Advising on securities and relevant investments
  • Guidance on what constitutes investment advice
  • Conduct of business requirements relating to investment advice
  • Advising on loan-based crowdfunding agreements
  • Advising on the conversion or transfer of pension benefits
  • Safeguarded benefits, flexible benefits and subsisting rights defined
  • Other advising activities regulated by the RAO
  • Advising on home finance transactions
  • more

This Practice Note covers the regulated activities of providing basic advice to retail consumers on stakeholder products and of advising on:

  1. securities and relevant investments

  2. loan-based crowdfunding agreements, and

  3. the conversion or transfer of pension benefits

Providing basic advice to retail consumers on stakeholder products

Providing basic advice to retail consumers on stakeholder products is a regulated activity under article 52B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO).

This activity covers advice in the form of a recommendation given by a person (P), in the course of a business that P carries on, to a ‘retail consumer’. The recommendation must relate to a stakeholder product and certain conditions relating to the provision of basic advice must be met. 

A retail consumer is any person who is advised by P giving the basic advice on the merits of opening or buying a stakeholder product in the course of a business carried on by P and who does not receive the advice in the course of a business carried on by him:

  1. a stakeholder CTF

  2. a stakeholder pension scheme, or

  3. an investment of a kind specified in the Financial Services and Markets Act 2000 (Stakeholder Products) Regulations 2004 (SI 2004/2738), such as certain deposit accounts, units in certain collective investment schemes and rights under certain linked long-term contracts

The conditions relating to the provision of basic