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What does ‘group’ mean in the context of Article 69 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 and how would this definition apply where a potential grouping of entities includes a limited liability company and a limited partnership?

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Published on LexisPSL on 19/03/2019

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  • What does ‘group’ mean in the context of Article 69 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 and how would this definition apply where a potential grouping of entities includes a limited liability company and a limited partnership?

What does ‘group’ mean in the context of Article 69 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 and how would this definition apply where a potential grouping of entities includes a limited liability company and a limited partnership?

As noted in Practice Note: Exclusions and exemptions relating to the general prohibition—an introduction, the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO 2001), SI 2001/544, Art 53 excludes the giving of advice by a person if the person is a member of a group and gives the advice in question to another member of the same group.

Therefore, the general principle is that as long as advice that would otherwise be regulated advice take place wholly within a group of companies or a joint enterprise, then there is no need for authorisation.

While ‘group’ is not defined in RAO 2001, SI 2001/544, it is defined in section 421 of the Financial Services and Markets Act 2000 (FSMA 2000) as meaning (in relation to a person (A)) A and any person who is:

‘(a) a parent undertaking of A;

(b) a subsidiary undertaking of A;

(c) a subsidiary undertaking of a parent

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