lOMoARcPSD|30 13804
PSC FINANCIAL AND BUSINESS SKILLS EXAM ULAW
UPDATED QUESTIONS AND 100% CORRECT
ANSWERS WITH A GUARANTEED A+|| 2025-2026
LATEST AND COMPLETE UPDATE WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!
1. Is the firm of solicitors in business?
a. Yes. By [DOING XYZ], we are providing a service to [CLIENT], therefore we are acting in the
course of business.
2. Is there a specified investment? (Choose 2 relevant specified + 2 relevant unspecified)
a. Specified investments are investments specified as such by the Regulated Activities Order
(RAO), including:
i. “Securities”
1. Shares
2. Shares in OEICs
3. Shares in Investment trusts
4. Bonds
5. Debentures
6. Gilts
7. Warrants (right to buy shares)
8. Units in unit trusts
9. Personal and stakeholder pensions
10. Stocks & shares ISA
ii. “Relevant investments”
1. ALL Insurance contracts
2. Options for certain assets:
a. Securities
b. Foreign Currencies
c. Precious metals
d. Contractually based investments
e. An option on an option of the above assets
, lOMoARcPSD|30 13804
3. Futures
4. Contracts for difference (i.e. equity derivates)
5. Rights under a funeral plan scheme
iii. “Contractually based investments”
1. “Qualifying contracts of insurance”
a. Whole life policies (not term life insurance)
b. Endowment policies (often linked with “endowment mortgage”)
c. Annuities
2. Options (as above)
3. Futures
4. Contracts for difference (i.e. equity derivates)
5. Rights under a funeral plan scheme
iv. “Regulated mortgage contracts” (RMCs), i.e.:
1. A loan;
2. Secured by way of charge over land;
3. Where at least 40% of that land is used as a dwelling by the borrower
a. Typical homeowner mortgages are included, but buy-to-let mortgages,
second mortgages, or mortgages to companies are generally not covered.
v. Regulated home finance transactions
1. Home reversion plans (equity release)
2. Home purchase plans (Islamic finance)
1
1
, lOMoARcPSD|30 13804
3. Sale & lease back plans
vi. Consumer credit / hire agreements
a. Unspecified investments
i. Bank / building society accounts
ii. Cash ISA
iii. Land
iv. Options over land
v. National savings products (including premium bonds)
vi. Commercial borrowing
vii. Occupational pensions
3. Is there a specified activity? (Choose 3)
a. Specified activities are those activities specified as such by the RAO.
b. “The work undertaken by the firm in [REAL ESTATE] is likely to involve the following
specified activities:”
c. Investment-related Activities
i. Arranging deals in investments (Art 25)
1. This applies where a solicitor makes arrangements for another person to deal in a
security and/or relevant investment.
2. To deal means buying or selling for consideration.
3. Arranging includes either:
a. Bringing about deals (e.g. filling out stock transfer form); or
b. Making arrangements with a view to deal (e.g. introducing the client to a
stockbroker / financial advisor)
4. APPLY
ii. Advising on investments (Art. 53)
, lOMoARcPSD|30 13804
1. This applies where a solicitor advises a client on the merits of dealing in a
particular investment, where investment means securities and/or relevant
investments
2. To deal means buying or selling for consideration.
3. The advice must be specific; generic advice will not be caught.
4. APPLY
iii. Managing investments (Art. 37)
1. This applies where a solicitor manages assets where:
a. The assets are securities or contractually based investments;
b. The assets belong to someone else; AND
c. Sole discretion is exercised by the firm, not the client (i.e. where the
solicitor is a trustee of a discretionary trust / personal representative
(executor or administrator of a will))
2. APPLY
iv. Safeguarding AND administering investments (Art. 40)
1. This applies where a solicitor safeguards AND administers assets which:
a. Are securities or contractually based investments; and
b. belong to someone else
2. Safeguarding means controlling the assets (i.e. possessing physical custody of the
asset, e.g. obtaining share certificates)
3. Administering means doing something else such as collecting income / dividends
or proxy voting
2
PSC FINANCIAL AND BUSINESS SKILLS EXAM ULAW
UPDATED QUESTIONS AND 100% CORRECT
ANSWERS WITH A GUARANTEED A+|| 2025-2026
LATEST AND COMPLETE UPDATE WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!
1. Is the firm of solicitors in business?
a. Yes. By [DOING XYZ], we are providing a service to [CLIENT], therefore we are acting in the
course of business.
2. Is there a specified investment? (Choose 2 relevant specified + 2 relevant unspecified)
a. Specified investments are investments specified as such by the Regulated Activities Order
(RAO), including:
i. “Securities”
1. Shares
2. Shares in OEICs
3. Shares in Investment trusts
4. Bonds
5. Debentures
6. Gilts
7. Warrants (right to buy shares)
8. Units in unit trusts
9. Personal and stakeholder pensions
10. Stocks & shares ISA
ii. “Relevant investments”
1. ALL Insurance contracts
2. Options for certain assets:
a. Securities
b. Foreign Currencies
c. Precious metals
d. Contractually based investments
e. An option on an option of the above assets
, lOMoARcPSD|30 13804
3. Futures
4. Contracts for difference (i.e. equity derivates)
5. Rights under a funeral plan scheme
iii. “Contractually based investments”
1. “Qualifying contracts of insurance”
a. Whole life policies (not term life insurance)
b. Endowment policies (often linked with “endowment mortgage”)
c. Annuities
2. Options (as above)
3. Futures
4. Contracts for difference (i.e. equity derivates)
5. Rights under a funeral plan scheme
iv. “Regulated mortgage contracts” (RMCs), i.e.:
1. A loan;
2. Secured by way of charge over land;
3. Where at least 40% of that land is used as a dwelling by the borrower
a. Typical homeowner mortgages are included, but buy-to-let mortgages,
second mortgages, or mortgages to companies are generally not covered.
v. Regulated home finance transactions
1. Home reversion plans (equity release)
2. Home purchase plans (Islamic finance)
1
1
, lOMoARcPSD|30 13804
3. Sale & lease back plans
vi. Consumer credit / hire agreements
a. Unspecified investments
i. Bank / building society accounts
ii. Cash ISA
iii. Land
iv. Options over land
v. National savings products (including premium bonds)
vi. Commercial borrowing
vii. Occupational pensions
3. Is there a specified activity? (Choose 3)
a. Specified activities are those activities specified as such by the RAO.
b. “The work undertaken by the firm in [REAL ESTATE] is likely to involve the following
specified activities:”
c. Investment-related Activities
i. Arranging deals in investments (Art 25)
1. This applies where a solicitor makes arrangements for another person to deal in a
security and/or relevant investment.
2. To deal means buying or selling for consideration.
3. Arranging includes either:
a. Bringing about deals (e.g. filling out stock transfer form); or
b. Making arrangements with a view to deal (e.g. introducing the client to a
stockbroker / financial advisor)
4. APPLY
ii. Advising on investments (Art. 53)
, lOMoARcPSD|30 13804
1. This applies where a solicitor advises a client on the merits of dealing in a
particular investment, where investment means securities and/or relevant
investments
2. To deal means buying or selling for consideration.
3. The advice must be specific; generic advice will not be caught.
4. APPLY
iii. Managing investments (Art. 37)
1. This applies where a solicitor manages assets where:
a. The assets are securities or contractually based investments;
b. The assets belong to someone else; AND
c. Sole discretion is exercised by the firm, not the client (i.e. where the
solicitor is a trustee of a discretionary trust / personal representative
(executor or administrator of a will))
2. APPLY
iv. Safeguarding AND administering investments (Art. 40)
1. This applies where a solicitor safeguards AND administers assets which:
a. Are securities or contractually based investments; and
b. belong to someone else
2. Safeguarding means controlling the assets (i.e. possessing physical custody of the
asset, e.g. obtaining share certificates)
3. Administering means doing something else such as collecting income / dividends
or proxy voting
2
