MEMA Scope · Assessment

Do accountants and solicitors giving financial advice need FCA authorisation?

An accountancy, legal or similar professional firm sometimes advises clients on investments, insurance or mortgages as an incidental part of its main services. Review the initial view below and answer a few questions to refine it.

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  • FCA rule references
  • Follow-up questions available
Initial viewProvisional assessment

Outcome depends on the detail

Professional firms may be exempt for incidental work, but only on strict conditions

FSMA Part 20 allows certain professional firms to carry on some regulated activities without authorisation if they meet the conditions, which include that the activity is incidental and no commission is received.

Route to consider: Depends on facts we still need

Investment Advice

Why this was flagged

  • 1Advising on investments is regulated whoever gives the advice.
  • 2A professional firm exemption exists, but it is subject to conditions including its relationship to the professional services.

Questions still to resolve

Answer to refine the view. The result updates as you go.

  • ?

    Is the financial work incidental to your main professional services and not separately charged or marketed?

  • ?

    Do you receive commission or other reward from product providers or recipients of your referrals?

  • ?

    Do you only refer clients to authorised firms and do no advice or arranging yourself?

Regulatory basis to examine

FSMA 2000 s.327 Exemption from the general prohibition for professional firmsExemption from the general prohibition for professional firms (opens in a new tab)RAO Art.53 Advising on investmentsAdvising on investments (opens in a new tab)RAO Art.33 Introducing (exclusion)Introducing (exclusion) (opens in a new tab)PERG 2.7 Activities: a broad outlinePerimeter guidance (PERG 2.7) (opens in a new tab)

Your next steps

  1. 1Confirm whether your professional body is designated for Part 20 purposes and what it requires
  2. 2List every type of financial work you do and how you are paid
  3. 3Stop or restructure any activity outside the exemption conditions
  4. 4Consider authorisation or an introducer arrangement for anything beyond incidental work

Where applications for this model most often fall short

  • A record of which activities are incidental and why
  • Fee and commission arrangements with providers
  • Your professional body’s rules and requirements
Book a free scoping call

This is an initial indication from published FCA material, not an FCA determination or legal advice.

Continue with a more detailed readiness assessment

If authorisation is required, check the firm’s governance, policies, resources and application preparedness.

Will the FCA Authorise Us?

MEMA Scope gives an initial view from published FCA material. It is not legal advice or an FCA determination. Automatic matching and typed questions use AI only to choose a profile and to answer from vetted guidance; the assessment itself is never written by AI.

About this business model

An accountancy, legal or similar professional firm sometimes advises clients on investments, insurance or mortgages as an incidental part of its main services.

FSMA Part 20 allows certain professional firms to carry on some regulated activities without authorisation if they meet the conditions, which include that the activity is incidental and no commission is received.

This page gives an initial view from published FCA and legislation sources. It is not an FCA determination or legal advice. Not your business model? Describe your business in MEMA Scope.

Accountancy or law firm giving some financial advice: frequently asked questions

Can accountants advise on investments without FCA authorisation?

Some professional firms are exempt under FSMA Part 20 for regulated activities that are incidental to their main services, but the exemption has conditions, including limits on commission, and does not cover everything.

Can an accountant take referral fees for introducing clients?

Referral fees from third parties can take a firm outside the professional firm exemption, and introductions may themselves be arranging.

What could change the answer for accountants and solicitors giving financial advice?

FSMA Part 20 allows certain professional firms to carry on some regulated activities without authorisation if they meet the conditions, which include that the activity is incidental and no commission is received. It can change depending on the answers to questions such as: Is the financial work incidental to your main professional services and not separately charged or marketed? Do you receive commission or other reward from product providers or recipients of your referrals? Do you only refer clients to authorised firms and do no advice or arranging yourself?

Which FCA rules should accountants and solicitors giving financial advice look at first?

Start with: Exemption from the general prohibition for professional firms; Advising on investments; Introducing (exclusion); Perimeter guidance (PERG 2.7). This is an initial view from published FCA material, not an FCA determination.

What are the first steps for accountants and solicitors giving financial advice?

Confirm whether your professional body is designated for Part 20 purposes and what it requires. List every type of financial work you do and how you are paid. Stop or restructure any activity outside the exemption conditions. Consider authorisation or an introducer arrangement for anything beyond incidental work.

Businesses we check

MEMA Scope covers 32 common business models. Each page explains whether that kind of business may need FCA authorisation, the rules to look at and the routes to consider.

Want a consultant to look at your facts?

Book a free scoping call and we will map the permissions, evidence and timeline for your firm.

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Email: contact@memaconsultants.com