PART II SPECIFIED ACTIVITIES

Chapter XIIAdvising on Investments

The activity

Advising on investments53

Advising a person is a specified kind of activity if the advice is—

a

given to the person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor; and

b

advice on the merits of his doing any of the following (whether as principal or agent)—

i

buying, selling, subscribing for or underwriting a particular investment which is a security or a F2relevant investment, or

ii

exercising any right conferred by such an investment to buy, sell, subscribe for or underwrite such an investment.

F1Advising on regulated mortgage contracts53A

1

Advising a person is a specified kind of activity if the advice—

a

is given to the person in his capacity as a borrower or potential borrower; and

b

is advice on the merits of his doing any of the following—

i

entering into a particular regulated mortgage contract, or

ii

varying the terms of a regulated mortgage contract entered into by him after the coming into force of article 61 in such a way as to vary his obligations under that contract.

2

In this article, “borrower” has the meaning given by article 61(3)(a)(i).

F3Advising on regulated home reversion plans53B

Advising a person is a specified kind of activity if the advice—

a

is given to the person in his capacity as—

i

a reversion seller or potential reversion seller, or

ii

a plan provider or potential plan provider; and

b

is advice on the merits of his doing either of the following—

i

entering into a particular regulated home reversion plan, or

ii

varying the terms of a regulated home reversion plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.

F3Advising on regulated home purchase plans53C

Advising a person is a specified kind of activity if the advice—

a

is given to the person in his capacity as a home purchaser or potential home purchaser; and

b

is advice on the merits of his doing either of the following—

i

entering into a particular regulated home purchase plan, or

ii

varying the terms of a regulated home purchase plan, entered into on or after 6th April 2007 by him, in such a way as to vary his obligations under that plan.