This sourcebook applies as follows:
This sourcebook is also relevant to designated professional bodies.
Under Part XX of the Act (Provision of Financial Services by Members of the Professions) certain individuals, partnerships or corporate entities, known as exempt professional firms, can carry on particular regulated activities (which the Act terms exempt regulated activities) under supervision and regulation by designated professional bodies.
This sourcebook outlines:
the arrangements for designation of professional bodies;
the FCA's duty to keep itself informed about how designated professional bodies supervise and regulate the exempt regulated activities of exempt professional firms and how exempt professional firms carry on exempt regulated activities;
the FCA's power under section 328 of the Act (Directions in relation to the general prohibition) to make a direction to deny the exemption to different classes of person or to different descriptions of regulated activity;
- (6) 5
This sourcebook also contains disclosure rules made by the FCA under the power conferred by section 332(1) of the Act (Rules in relation to persons to whom the general prohibition does not apply). These rules apply to exempt professional firms for the purpose of ensuring that their clients are made aware that exempt professional firms are not authorised persons.
assist the protection of clients of exempt professional firms by ensuring that the FCA9 has information which allows it to keep under review the exercise of the direction power under section 328 of the Act (see PROF 1.1.4 G (4));9
- (2) 79
- (3) 99
authorised professional firms and exempt professional firms that wish to exercise their EEA right under the Insurance Mediation Directive5 to establish a branch or provide cross border services in another EEA State.35
Professional firms should refer to PERG 8 (Financial promotion and related activities) for general guidance on financial promotion and to PERG 8.15 (Financial promotions by members of the professions (articles 55 and 55A)) for guidance on the exemptions which are specifically intended for professional firms.2