Financial Advisers Act 2008

5A Who are clients

(1)

For the purposes of this Act, a client

(a)

means a person who receives a service (whether or not on payment of a charge); and

(b)

in relation to a broking service, means the person on whose behalf the client money or client property is received, held, paid, or transferred under the service (but excludes the product provider); but

(c)

does not include a person who receives any service from another person if the service is both provided and received in the course of, and for the purposes of,—

(i)

the same business; or

(ii)

the businesses of related bodies corporate; or

(iii)

the businesses of members of a QFE group.

Example

If a company employee (A) gives financial advice to the board of directors on investments to be made by the company, the directors are not clients of A. However, if A, in the course of business, gives that same financial advice to another employee (B) in relation to B’s own investments, B would be a client of A for the purposes of this Act.

(2)

Subsection (1) applies whether the person providing or receiving the service is the person carrying on the business, a controlling owner, a director, an agent, or any other person.

Section 5A: inserted, on 1 July 2010, by section 9 of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 5A(1)(b): amended, on 1 April 2014, by section 13 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).