The following Financial Services Q&A produced in partnership with Russell Kelsall LLB (Hull); LPC (Shef) of TLT provides comprehensive and up to date legal information covering:
The activity of ‘advising on investments’ is set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO 2001), SI 2001/544, art 53(1). It includes advice on exercising, or not exercising, any right conferred by investments (including pre-emption rights) to buy, sell, subscribe for, exchange or redeem other investments. For more information about the activity of advising on investments, see Practice Note: Advising on basic stakeholder products, investments, pension transfers and loan-based crowdfunding agreements.
Advice will only fall within RAO 2001, SI 2001/544, art 53(1) if it is carried on ‘by way of business’. A company that provides investment advice will not be considered as doing so unless they ‘carry on the business of engaging in’ investment advice. Further guidance is set out in the Financial Conduct Authority’s Perimeter Guidance Manual (PERG) at PERG 2.3.2(2)G and Practice Note: What does ‘by way of business’ mean?.
So long as the company's communication to its shareholder asking them to disapply pre-emption rights is not part of that company's business, it is unlikely to be a regulated activity.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
This Practice Note considers the law governing the procedural law of arbitration proceedings (the curial law or lex arbitri) and how it is determined under the law of England and Wales (England and English are used as convenient shorthand).The procedural law of the arbitral proceedingsThe procedural
Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For more information, see Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?Before the members can vote on a
This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge provisions•how negative pledges are viewed in the context of security and quasi-security, and•key considerations when drafting a negative pledge clauseWhere
Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been introduced, which affect the following:•proceedings for possession•forfeiture of business leases on the grounds of non-payment of rent•a landlord's right to
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.