Part XX Provision of Financial Services by Members of the Professions

328 Directions in relation to the general prohibition.

(1)

The Authority may direct that section 327(1) is not to apply to the extent specified in the direction.

(2)

A direction under subsection (1)—

(a)

must be in writing;

(b)

may be given in relation to different classes of person or different descriptions of regulated activity.

(3)

A direction under subsection (1) must be published in the way appearing to the Authority to be best calculated to bring it to the attention of the public.

(4)

The Authority may charge a reasonable fee for providing a person with a copy of the direction.

(5)

The Authority must, without delay, give the Treasury a copy of any direction which it gives under this section.

F1(6)

The Authority may exercise the power conferred by subsection (1) only if it is satisfied either—

(a)

that it is desirable to do so in order to protect the interests of clients; or

(b)

that it is necessary to do so in order to comply with a Community obligation imposed by the insurance mediation directive.

(7)

In considering whether it is F2satisfied of the matter specified in subsection (6)(a), the Authority must have regard amongst other things to the effectiveness of any arrangements made by any designated professional body—

(a)

for securing compliance with rules made under section 332(1);

(b)

for dealing with complaints against its members in relation to the carrying on by them of exempt regulated activities;

(c)

in order to offer redress to clients who suffer, or claim to have suffered, loss as a result of misconduct by its members in their carrying on of exempt regulated activities;

(d)

for co-operating with the Authority under section 325(4).

(8)

In this Part “clients” means—

(a)

persons who use, have used or are or may be contemplating using, any of the services provided by a member of a profession in the course of carrying on exempt regulated activities;

(b)

persons who have rights or interests which are derived from, or otherwise attributable to, the use of any such services by other persons; or

(c)

persons who have rights or interests which may be adversely affected by the use of any such services by persons acting on their behalf or in a fiduciary capacity in relation to them.

(9)

If a member of a profession is carrying on an exempt regulated activity in his capacity as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or are or may be contemplating using services provided by that person in his carrying on of that activity.