SQE1 sample questions

Question 91

A solicitor is employed by a law firm. Neither the solicitor nor her firm are authorised by the Financial Conduct Authority to make financial promotions in accordance with the Financial Services and Markets Act 2000 and associated secondary legislation (FSMA).

The solicitor takes part in a half marathon. At the end of the run the solicitor talks to another runner who admires the solicitor’s sunglasses. The solicitor explains that the sunglasses are manufactured by a private limited company in which she recently invested some of her own money. She explains that the company is now expanding its operations and is looking for further investment.

The runner states that he is considering investing in shares in a company that is involved in the fitness industry, and that he would be interested in learning more about the company with a view to investing in it.

The solicitor gives the runner details of the company and recommends that he considers shares in that company as a potential investment. The runner does not know that she is a practising solicitor.

Has the solicitor engaged in unlawful financial promotion in breach of FSMA?

A. No, because the solicitor’s communications were not made in the course of business.

B. Yes, because the solicitor’s communications amount to an inducement to engage in an investment activity.

C. No, because the solicitor’s communications are exempt as they relate to the purchase of shares in a body corporate.

D. No, because the solicitor’s communications are exempt as a solicited non-real time promotion.

E. Yes, because the solicitor’s communications are not part of any other professional services provided to the runner.


A - No, because the solicitor’s communications were not made in the course of business.

Candidates who answered correctly: 72%


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