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Financial advisory
RES5Financial Advisory Services✓Which of the following require the entity to hold a capital markets services licence, as described in the RES 1B guide? (a) A company providing custodial services for capital markets products. (b) An entity carrying on specified products lending. (c) A corporate finance advisory company acting as issue manager for a Mainboard listing. (d) A finance company licensed under the Finance Companies Act 1967 providing custodial services in connection with financing that the Act does not prohibit. Which of the following are CORRECT?
RES 1B ch.1.2.2.2 to 1.2.2.4. Custodians are required to hold a CMS licence for providing custodial services. Specified products lending is deemed to be dealing in capital markets products, so it needs a CMS licence for dealing, which is a different licence from the one covering product financing. Issue managers and sponsors advise on corporate finance under a CMS licence. Finance companies licensed under the Finance Companies Act are exempted institutions for regulated activities the Act does not prohibit, or where an exception under section 25(2) has been granted.
Product financing and specified products lending are not the same activity and do not sit under the same licence.
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