The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.
SRA Handbook
Prohibited activities
Back to version 21Version 6 of the Handbook was published on 01/01/2013. For more information, please click 'History' Above
Rule 3: Prohibited activities
- 3.1
-
A firm must not carry on, or agree to carry on, any of the following activities:
- (a)
- (b)
-
buying, selling, subscribing for or underwriting investments as principal where the firm:
- (i)
-
holds itself out as engaging in the business of buying such investments with a view to selling them;
- (ii)
-
holds itself out as engaging in the business of underwriting investments of the kind to which the transaction relates; or
- (iii)
-
regularly solicits members of the public with the purpose of inducing them, as principals or agents, to enter into transactions and the transaction is entered into as a result of the firm having solicited members of the public in that manner.
- (c)
-
buying or selling investments with a view to stabilising or maintaining the market price of the investments;
- (d)
-
acting as a stakeholder pension scheme manager;
- (e)
-
entering into a broker funds arrangement;
- (f)
-
effecting and carrying out contracts of insurance as principal;
- (g)
-
establishing, operating or winding up a collective investment scheme;
- (h)
-
establishing, operating or winding up a stakeholder pension scheme or a personal pension scheme;
- (i)
-
managing the underwriting capacity of a Lloyds syndicate as a managing agent at Lloyds;
- (j)
-
advising a person to become a member of a particular Lloyd's syndicate;
- (k)
-
entering as provider into a funeral plan contract;
- (l)
-
entering into a regulated mortgage contract as lender or administering a regulated mortgage contract (unless this is in the firm's capacity as a trustee or personal representative and the borrower is a beneficiary under the trust, will or intestacy);
- (m)
-
entering into a regulated home purchase plan as provider or administering a regulated home purchase plan (unless this is in the firm's capacity as a trustee or personal representative and the home purchaser is a beneficiary under the trust, will or intestacy);
- (n)
-
entering into a regulated home reversion plan as a provider or administering a regulated home reversion plan (unless this is in the firm's capacity as a trustee or personal representative and the reversion seller is a beneficiary under the trust, will or intestacy); or
- (o)
-
entering into a regulated sale and rent back agreement as an agreement provider or administering a regulated sale and rent back agreement (unless this is in the firm's capacity as a trustee or personal representative and the agreement seller is a beneficiary under the trust, will or intestacy).
-
Note
- (i)
-
The Treasury has made the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001 which sets out those activities which cannot be provided by professional firms under the Part XX exemption. These activities are also restricted in Rules 3 and 5 of the SRA Financial Services (Scope) Rules 2001.