Supplementary memorandum by the Financial
Services Authority (LAI 24A)
Q: What does it mean in practice that a company
is regulated by the FSA?
A: The FSA website contains information
on the different approaches that we use for the firms we regulated.
This can be found at the following link—http://www.fsa.gov.uk/Pages/Doing/Regulated/supervise/index.shtml.
Q: What steps has the FSA taken to regulate
treasury management advisors?
A: In general FSA conduct of business rules
about advice only cover regulated investment advice and firms
that are FSA authorised. The definition of what is and is not
regulated investment advice, and who does/does not need to be
regulated, is set out by the Treasury in the Regulated Activities
Order. How the FSA's conduct of business rules apply to regulated
advice depends on the exact circumstances of the situation, who
is giving the advice, who is receiving it and whether any exemptions
apply. Generally speaking, financial advisers giving advice about
deposits are not regulated. This is because the Treasury has not
included advice of this sort in the list of activities regulated
by the FSA. Further information on the regulated activities is
available on the following link—http://www.fsa.gov.uk/Pages/Doing/Do/index.shtml
Q: Are there different regulations for those
who advise public sector organisations as opposed to those who
advise individuals?
A: To the extent an investment consultant
is providing advice that is regulated advice and requires authorisation,
it would be subject to the FSA's authorisation procedure. Once
authorised, a firm would then become subject to the FSA rules
and supervisory regime. How the FSA's conduct of business rules
apply to regulated advice depends on the exact circumstances of
the situation, who is giving the advice, who is receiving it (ie
the type of client), the type of investment and whether any exemptions
apply. Therefore, there is not a specific regime for advice to
public sector organisations, the application of the rules will
instead apply on the specifics of each situation.
| 
