SQE1 sample questions

Question 46

A solicitor is employed by a firm of solicitors that is regulated by the Solicitors Regulation Authority (SRA) and is an ‘exempt professional firm’ for the purposes of financial services. The firm is not authorised by the Financial Conduct Authority. The solicitor is acting for a woman who is considering buying one of two neighbouring plots of farmland.

The woman would like advice on which of the two plots she should purchase and the solicitor refers the woman to a chartered surveyor who is ‘tied’ to a particular land agent. The woman selects, and decides to proceed with the purchase of, one plot of land on the basis of the advice she receives from the chartered surveyor. Neither the solicitor nor the firm receive a commission or other benefit as a result of referring the woman to the surveyor. The firm and the solicitor comply at all times with the SRA Financial Services (Conduct of Business) Rules and the SRA Financial Services (Scope) Rules.

Which of the following statements best describes why the solicitor is not in breach of the general prohibition under s.19 of the Financial Services and Markets Act 2000?

A. The plot of land is not a specified investment.

B. The solicitor is not acting in the course of business.

C. The solicitor can take advantage of the authorised third party exclusion.

D. The solicitor can take advantage of the introducing exclusion.

E. The solicitor’s advice is exempt as the firm is regulated by the SRA.