Terms of business - Investment advice

Enterprise_Warrior FMAAT, AAT Licensed Accountant Posts: 78

I am just setting up some terms of business for my website and found a number of them done by ICAEW accountants. They state that they are not authorised by the FSA but can still offer certain investment advice. Is this true of AAT members? Such advice may be SEIS or EIS.

Below is a snippet:
2.1 Since we are not authorised by the Financial Services Authority we may have to refer you to someone who is
authorised if you need advice on investments. However, as we are licensed by the Institute of Chartered Accountants in
England and Wales, we may be able to provide certain investment services that are complementary to, or arise out of,
the professional services we are providing to you.

2.2 Such advice may include:
• advise you on investments generally, but not recommend a particular investment or type of investment;
• refer you to a Permitted Third Party (PTP) (an independent firm authorised by the FSA), assist you and the PTP during the course of any advice given by that party and comment on, or explain, the advice received (but not make alternative recommendations). The PTP will issue you with their terms and conditions letter, they will be remunerated separately for their services and will take full responsibility for compliance with the requirements of the Financial Services and Markets Act 2000;
• advise you in connection with the disposal of an investment, other than your rights in a pension policy or scheme;
• advise and assist you in transactions concerning shares or other securities not quoted on a recognised exchange;
• assist you in making arrangements for transactions in investments in certain circumstances; and
• manage investments or act as trustee (or donee of a power of attorney) where decisions to invest are taken on the advice of an authorised person.

2.3 We may also, on the understanding that the shares or other securities of the company are not publicly traded:
• advise the company, existing or prospective shareholders in relation to exercising rights, taking benefits or share options, valuations and methods of such valuations;
• arrange any agreements in connection with the issue, sale or transfer of the company’s shares or other securities;
• arrange for the issue of new shares; and
• act as the addressee to receive confirmation of acceptance of offer documents etc.

2.4 In the unlikely event that we cannot meet our liabilities to you, you may be able to claim compensation under the Chartered Accountants’ Compensation Scheme in respect of exempt regulated activities undertaken.

2.5 We are not authorised by the Financial Services Authority.
FMAAT, AAT Licensed Accountant and CIMA finalist


  • Enterprise_Warrior
    Enterprise_Warrior FMAAT, AAT Licensed Accountant Posts: 78
    Is that not basically what the quote from above says? ICAEWs are in the same boat?
    FMAAT, AAT Licensed Accountant and CIMA finalist
Privacy Policy