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FSMA Flowcharts

The document outlines two flow charts for determining if a work activity is regulated and if an exemption can be used. Flow chart 1 considers if a work is a business, involves a specified investment, a specified activity, and if any exclusions apply to determine if the work is a regulated activity. Flow chart 2 considers various factors like if the work is incidental, if the firm is authorized, if insurance mediation requirements are met, and if commissions are properly accounted for to determine if a professional firms exemption can be used.

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lpscheater
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as PDF, TXT or read online on Scribd
284 views

FSMA Flowcharts

The document outlines two flow charts for determining if a work activity is regulated and if an exemption can be used. Flow chart 1 considers if a work is a business, involves a specified investment, a specified activity, and if any exclusions apply to determine if the work is a regulated activity. Flow chart 2 considers various factors like if the work is incidental, if the firm is authorized, if insurance mediation requirements are met, and if commissions are properly accounted for to determine if a professional firms exemption can be used.

Uploaded by

lpscheater
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Flow Chart 1 – To determine if work is a Regulated Activity

Conclusion:
Are you in business? Î There is NO
No Regulated Activity

Ð Yes

Conclusion:
Is there a specified investment? Î There is NO
No Regulated Activity

Ð Yes

Conclusion:
Is there a specified activity? Î There is NO
No Regulated Activity

Ð Yes

Conclusion:
Does an exclusion apply? Î There is NO
Yes Regulated Activity

Ð No
Conclusion:
There IS a
Regulated Activity
Flow Chart 2 – To determine if the
Exemption for Professional Firms can be used

Is the work a regulated activity? Î Conclusion:


Exemption is not applicable
No

Ð Yes

Is the work incidental to the client's


matter?
Î Conclusion:
Cannot use exemption
No

Ð Yes

Is the work incidental to the firm's


work overall?
Î Conclusion:
Cannot use exemption
No

Ð Yes

Is the firm authorised by the FSA


for other work?
Î Conclusion:
Cannot use exemption
Yes

Ð No

If insurance mediation, is the firm


on the FSA register, and does it Î Conclusion:
Cannot use exemption
have a compliance officer? No

Ð Yes or N/A

Is the work permitted by the SRA


and not prohibited by either a Î Conclusion:
No Cannot use exemption
Treasury Order or the FSA?

Ð Yes

Is any commission received which


is not accounted for to the client?
Î Conclusion:
Cannot use exemption
Yes

Ð No

Conclusion:
Can use exemption if comply with
Scope & COB Rules

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