A person with no authorisation regularly arranges deals in investments for clients in return for commission. Which consequence follows under FSMA 2000?
Answer and explanation
Correct answer: A. He commits a criminal offence under section 23 for breaching the general prohibition
- Step 1: Arranging deals in investments is a specified regulated activity.
- Step 2: If done by way of business without authorisation or exemption, the section 19 prohibition is breached and section 23 makes it an offence.
Answer
He commits a criminal offence under section 23 for breaching the general prohibition.
Why not the others: Disclosure of risk does not cure the breach; the Law Society is not the regulator; incorporation is irrelevant to authorisation.
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