PSC F&BS • ULTIMATE EXAM GUIDE
PSC FINANCIAL & BUSINESS SKILLS
ULTIMATE EXAM REVISION GUIDE
Chapters 2–19 of Ulaw Study Manual (excluding chapter 6 – not examinable)
Open-book answer structures • issue-spotting checklists • MCQ traps • formulas •
THIS GUIDE
This is an exam-routing document: identify the question type, follow the relevant structure, state the rule, apply it to the facts, and reach
a mini-conclusion.
INDEX
QUESTION / ISSUE PAGE
FSMA / is this a regulated activity? / specified investment or activity 3–4
RAO exclusions (Art / / 70) 4
s327 exemption / incidental tests / Scope Rules 5
COB Rules / execution-only / records / insurance demands & needs 6
FCA-authorised firm / permissions / sanctions 9
SRA principles / referrals / commission / compliance officers 10
Money laundering / POCA / CDD / reporting / tipping off 11
Investment-planning / suitable products / risk / income v growth 12–13
Gilts / shares / funds / ISA / pensions / insurance / mortgages 14–21
Calculations + key figures 22
MCQ traps 23
Mini templates for problem questions 24
FULL PAGE INDEX
Exam structure 2
General Prohibition / FSMA structure 3 Chapter 12 — Cash investments 14
RAO exclusions 4 Chapter 13 — Gilts & corporate bonds 15
s327 + Scope Rules 5 Chapter 14 — LSE & equities 16
COB Rules 6 Chapter 15 — Pooled / collective investments 17
Chapter 2 — Regulators / General Prohibition 7 Chapter 16 — ISAs 18
Chapter 3 — Financial advisers / RDR / referrals 8 Chapter 17 — Pensions 19
Chapter 8 — FCA-authorised firms 9 Chapter 18 — Life assurance / insurance / annuities 20
Chapter 9 — SRA regulatory overlay 10 Chapter 19 — Mortgages 21
Chapter 10 — Money laundering 11 Formulas, figures & shortcuts 22
Investment-planning answer structure 12 MCQ trap list 23
Chapter 11 — Investment strategy foundations 13 Ready-write mini templates 24
EXAM STRUCTURRE
ASSESSMENT STRUCTURE
Chapters 2–19 of Ulaw Study Manual (excluding Chapter 6) • Jan 2026 course materials • Page 1
, PSC F&BS • ULTIMATE EXAM GUIDE
The assessment structure is 50 marks: Section A = 16 + 7 + 12 marks; MCQs = 10 × 1.5 = 15 marks. Time spent should be 30 + 10 +
20 + 30 minutes = 90 minutes.
Part Default time What you are trying to do
Problem Q1 • 16 marks 30 min FSMA General Prohibition: regulated activity →
exclusions → s327 → Scope Rules.
Problem Q2 • 7 marks 10 min Usually compliance/COB or money laundering:
identify the regime and give an action-focused
answer.
Problem Q3 • 12 marks 20 min Products / investment planning / mortgages:
explain mechanics, suitability, risk, tax and
repayment.
10 MCQs • 15 marks 30 min Use elimination. Look for absolutist wording
(“always”, “never”, “only”), category traps and
tax/risk distinctions.
15-SECOND QUESTION ROUTER
“Is this regulated / does firm need FCA authorisation?” → FSMA: 4-part test → exclusion for EACH activity → s327 if still regulated.
“What must the firm do if using s327 / arranging insurance?” → COB STRUCTURE + SRA overlay.
“Unrecorded cash / suspicious source / reluctant client / proceeds of crime?” → AML STRUCTURE.
“Explain/advice on products / newspaper extract / investment strategy?” → INVESTMENT PLANNING + PRODUCT TABLE +
formulas.
“Explain mortgage options / repayment package?” → MORTGAGE STRUCTURE.
“FCA-authorised firm acted outside permission?” → CHAPTER 8: breach/discipline, not s23 criminal offence.
“Adviser/referral/independent vs restricted?” → CHAPTER 3 + SRA referrals.
MARK-SCORING HABITS
1. Name the legal test/rule before applying it.
2. Apply every important fact: product, client type, who decides, whether advice is specific, whether the solicitor stays involved, whether
separate remuneration/commission is received.
3. Use mini-conclusions: “Therefore Art 29 is unavailable”; “This remains regulated, so consider s327.”
4. Never stop at “it is regulated”. The marks are often in the exclusion/s327/Scope Rules analysis.
5. For product questions, never merely list products: explain why each product fits the client’s objective, time horizon, risk and tax
position.
Chapters 2–19 of Ulaw Study Manual (excluding Chapter 6) • Jan 2026 course materials • Page 2
, PSC F&BS • ULTIMATE EXAM GUIDE
1 — GENERAL PROHIBITION / FSMA PROBLEM QUESTION (CHAPTERS 2 & 4)
USE THIS STRUCTURE
PART A: Is a regulated activity being carried on? (1) Business → (2) Specified investment → (3) Specified activity → (4) Exclusion.
PART B: If it IS regulated, how can an unauthorised solicitors’ firm lawfully do it? FCA authorisation OR s327 exemption → Scope
Rules → COB Rules.
WRITE: “Section 19 FSMA provides that no person may carry on, or purport to carry on, a regulated activity in the UK unless
authorised or exempt. I would therefore consider whether the firm is carrying on a regulated activity by way of business,
involving a specified investment and specified activity, and whether any RAO exclusion applies.”
Step 1 — Is the firm acting “by way of business”?
• For a solicitor acting professionally for a client: almost always YES. State it quickly and move on.
WRITE: “The firm is providing professional services to a client and is therefore acting by way of business.”
Step 2 — Identify EVERY specified investment
Category Treat as specified for this course Key contrast / trap
Securities Shares/equities; bonds/debentures/loan stock; Cash/deposit accounts and occupational pensions
gilts/government stock; warrants; investment trust are not ordinary specified investments for this
shares; unit trust units; OEIC shares; rights under analysis.
personal/stakeholder pensions.
Relevant investments ALL contracts of insurance; options; futures; Term insurance is still specified even though it is
contracts for difference; funeral-plan rights. NOT a qualifying contract / retail investment
product.
Contractually based investments Qualifying insurance contracts: whole life, Do not treat every insurance policy as
endowment, annuity; plus contractually based: term insurance is not
options/futures/CFDs/funeral-plan rights. qualifying.
Regulated mortgage contract Mortgage where the course’s residential-use Commercial-property mortgage / unregulated
threshold is met (at least 40% residential use). mortgage is not a specified RMC.
Consumer credit / hire Consumer loans, credit cards, certain hire/credit Commercial borrowing is not the same thing.
arrangements.
NOT SPECIFIED — MCQ MAGNETS
Cash; current/deposit accounts; cash ISA; National Savings products / Premium Bonds; land; chattels; options over land; ordinary
commercial borrowing; occupational pension rights; unregulated/commercial-property mortgage.
A stocks & shares ISA is a wrapper: look through it to the underlying shares/bonds/funds, which are specified.
Step 3 — Identify EACH specified activity and apply it
Activity Exam definition Fact triggers
Advising — Art 53 Advice on the merits of buying/selling/dealing in a “Which fund/share/policy should I buy/sell?” Generic
PARTICULAR investment. Must be specific. education about investment types is not Art 53 advice.
Arranging — Art 25 Bringing about a deal OR making arrangements with a Completing transaction steps, liaising with
view to a deal. broker/provider, paperwork that brings transaction
about. Mere introduction can be different.
Managing — Art 37 Exercising discretion over another person’s Solicitor decides what/when to buy/sell rather than
investment portfolio. client deciding.
Safeguarding & administering — Art 40 Custody/control PLUS administration of investments. Holding title documents/securities and collecting
income, voting, processing corporate actions etc.
Safeguarding alone is insufficient.
Dealing as principal Solicitor deals on own account / as principal. Unusual in ordinary client work; can arise where
solicitor is trustee/PR.
Dealing as agent Solicitor deals as agent on client’s behalf. Contract note / transaction is in solicitor’s name for
client.
Insurance distribution Advising, arranging, dealing as agent, or assisting in Obtaining policy; recommending policy;
administration AND performance of insurance. notifying/negotiating claim. Ordinary adversarial
litigation against insurer is different.
Regulated mortgage activities Arranging/advising on particular RMC; entering as Specific mortgage recommendation; arranging
lender; administering. entry/variation; collecting/recovering sums as
administrator.
Chapters 2–19 of Ulaw Study Manual (excluding Chapter 6) • Jan 2026 course materials • Page 3
PSC FINANCIAL & BUSINESS SKILLS
ULTIMATE EXAM REVISION GUIDE
Chapters 2–19 of Ulaw Study Manual (excluding chapter 6 – not examinable)
Open-book answer structures • issue-spotting checklists • MCQ traps • formulas •
THIS GUIDE
This is an exam-routing document: identify the question type, follow the relevant structure, state the rule, apply it to the facts, and reach
a mini-conclusion.
INDEX
QUESTION / ISSUE PAGE
FSMA / is this a regulated activity? / specified investment or activity 3–4
RAO exclusions (Art / / 70) 4
s327 exemption / incidental tests / Scope Rules 5
COB Rules / execution-only / records / insurance demands & needs 6
FCA-authorised firm / permissions / sanctions 9
SRA principles / referrals / commission / compliance officers 10
Money laundering / POCA / CDD / reporting / tipping off 11
Investment-planning / suitable products / risk / income v growth 12–13
Gilts / shares / funds / ISA / pensions / insurance / mortgages 14–21
Calculations + key figures 22
MCQ traps 23
Mini templates for problem questions 24
FULL PAGE INDEX
Exam structure 2
General Prohibition / FSMA structure 3 Chapter 12 — Cash investments 14
RAO exclusions 4 Chapter 13 — Gilts & corporate bonds 15
s327 + Scope Rules 5 Chapter 14 — LSE & equities 16
COB Rules 6 Chapter 15 — Pooled / collective investments 17
Chapter 2 — Regulators / General Prohibition 7 Chapter 16 — ISAs 18
Chapter 3 — Financial advisers / RDR / referrals 8 Chapter 17 — Pensions 19
Chapter 8 — FCA-authorised firms 9 Chapter 18 — Life assurance / insurance / annuities 20
Chapter 9 — SRA regulatory overlay 10 Chapter 19 — Mortgages 21
Chapter 10 — Money laundering 11 Formulas, figures & shortcuts 22
Investment-planning answer structure 12 MCQ trap list 23
Chapter 11 — Investment strategy foundations 13 Ready-write mini templates 24
EXAM STRUCTURRE
ASSESSMENT STRUCTURE
Chapters 2–19 of Ulaw Study Manual (excluding Chapter 6) • Jan 2026 course materials • Page 1
, PSC F&BS • ULTIMATE EXAM GUIDE
The assessment structure is 50 marks: Section A = 16 + 7 + 12 marks; MCQs = 10 × 1.5 = 15 marks. Time spent should be 30 + 10 +
20 + 30 minutes = 90 minutes.
Part Default time What you are trying to do
Problem Q1 • 16 marks 30 min FSMA General Prohibition: regulated activity →
exclusions → s327 → Scope Rules.
Problem Q2 • 7 marks 10 min Usually compliance/COB or money laundering:
identify the regime and give an action-focused
answer.
Problem Q3 • 12 marks 20 min Products / investment planning / mortgages:
explain mechanics, suitability, risk, tax and
repayment.
10 MCQs • 15 marks 30 min Use elimination. Look for absolutist wording
(“always”, “never”, “only”), category traps and
tax/risk distinctions.
15-SECOND QUESTION ROUTER
“Is this regulated / does firm need FCA authorisation?” → FSMA: 4-part test → exclusion for EACH activity → s327 if still regulated.
“What must the firm do if using s327 / arranging insurance?” → COB STRUCTURE + SRA overlay.
“Unrecorded cash / suspicious source / reluctant client / proceeds of crime?” → AML STRUCTURE.
“Explain/advice on products / newspaper extract / investment strategy?” → INVESTMENT PLANNING + PRODUCT TABLE +
formulas.
“Explain mortgage options / repayment package?” → MORTGAGE STRUCTURE.
“FCA-authorised firm acted outside permission?” → CHAPTER 8: breach/discipline, not s23 criminal offence.
“Adviser/referral/independent vs restricted?” → CHAPTER 3 + SRA referrals.
MARK-SCORING HABITS
1. Name the legal test/rule before applying it.
2. Apply every important fact: product, client type, who decides, whether advice is specific, whether the solicitor stays involved, whether
separate remuneration/commission is received.
3. Use mini-conclusions: “Therefore Art 29 is unavailable”; “This remains regulated, so consider s327.”
4. Never stop at “it is regulated”. The marks are often in the exclusion/s327/Scope Rules analysis.
5. For product questions, never merely list products: explain why each product fits the client’s objective, time horizon, risk and tax
position.
Chapters 2–19 of Ulaw Study Manual (excluding Chapter 6) • Jan 2026 course materials • Page 2
, PSC F&BS • ULTIMATE EXAM GUIDE
1 — GENERAL PROHIBITION / FSMA PROBLEM QUESTION (CHAPTERS 2 & 4)
USE THIS STRUCTURE
PART A: Is a regulated activity being carried on? (1) Business → (2) Specified investment → (3) Specified activity → (4) Exclusion.
PART B: If it IS regulated, how can an unauthorised solicitors’ firm lawfully do it? FCA authorisation OR s327 exemption → Scope
Rules → COB Rules.
WRITE: “Section 19 FSMA provides that no person may carry on, or purport to carry on, a regulated activity in the UK unless
authorised or exempt. I would therefore consider whether the firm is carrying on a regulated activity by way of business,
involving a specified investment and specified activity, and whether any RAO exclusion applies.”
Step 1 — Is the firm acting “by way of business”?
• For a solicitor acting professionally for a client: almost always YES. State it quickly and move on.
WRITE: “The firm is providing professional services to a client and is therefore acting by way of business.”
Step 2 — Identify EVERY specified investment
Category Treat as specified for this course Key contrast / trap
Securities Shares/equities; bonds/debentures/loan stock; Cash/deposit accounts and occupational pensions
gilts/government stock; warrants; investment trust are not ordinary specified investments for this
shares; unit trust units; OEIC shares; rights under analysis.
personal/stakeholder pensions.
Relevant investments ALL contracts of insurance; options; futures; Term insurance is still specified even though it is
contracts for difference; funeral-plan rights. NOT a qualifying contract / retail investment
product.
Contractually based investments Qualifying insurance contracts: whole life, Do not treat every insurance policy as
endowment, annuity; plus contractually based: term insurance is not
options/futures/CFDs/funeral-plan rights. qualifying.
Regulated mortgage contract Mortgage where the course’s residential-use Commercial-property mortgage / unregulated
threshold is met (at least 40% residential use). mortgage is not a specified RMC.
Consumer credit / hire Consumer loans, credit cards, certain hire/credit Commercial borrowing is not the same thing.
arrangements.
NOT SPECIFIED — MCQ MAGNETS
Cash; current/deposit accounts; cash ISA; National Savings products / Premium Bonds; land; chattels; options over land; ordinary
commercial borrowing; occupational pension rights; unregulated/commercial-property mortgage.
A stocks & shares ISA is a wrapper: look through it to the underlying shares/bonds/funds, which are specified.
Step 3 — Identify EACH specified activity and apply it
Activity Exam definition Fact triggers
Advising — Art 53 Advice on the merits of buying/selling/dealing in a “Which fund/share/policy should I buy/sell?” Generic
PARTICULAR investment. Must be specific. education about investment types is not Art 53 advice.
Arranging — Art 25 Bringing about a deal OR making arrangements with a Completing transaction steps, liaising with
view to a deal. broker/provider, paperwork that brings transaction
about. Mere introduction can be different.
Managing — Art 37 Exercising discretion over another person’s Solicitor decides what/when to buy/sell rather than
investment portfolio. client deciding.
Safeguarding & administering — Art 40 Custody/control PLUS administration of investments. Holding title documents/securities and collecting
income, voting, processing corporate actions etc.
Safeguarding alone is insufficient.
Dealing as principal Solicitor deals on own account / as principal. Unusual in ordinary client work; can arise where
solicitor is trustee/PR.
Dealing as agent Solicitor deals as agent on client’s behalf. Contract note / transaction is in solicitor’s name for
client.
Insurance distribution Advising, arranging, dealing as agent, or assisting in Obtaining policy; recommending policy;
administration AND performance of insurance. notifying/negotiating claim. Ordinary adversarial
litigation against insurer is different.
Regulated mortgage activities Arranging/advising on particular RMC; entering as Specific mortgage recommendation; arranging
lender; administering. entry/variation; collecting/recovering sums as
administrator.
Chapters 2–19 of Ulaw Study Manual (excluding Chapter 6) • Jan 2026 course materials • Page 3
