The Financial Services and Markets Act 2000 regulates the provision of which type(s) of financial advice?
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A. B. C. D.B
The Financial Services and Markets Act 2000 (FSMA) is a UK law that regulates the provision of financial services and products, including financial advice. The Act establishes a framework for the regulation of financial services in the UK, with the aim of promoting consumer protection, market efficiency, and competition.
The Act applies to all individuals and entities that carry out regulated activities in the UK. Regulated activities include a wide range of financial services, such as investment advice, insurance mediation, and consumer credit activities.
Regarding the provision of financial advice, the Act applies to all individuals, unless they are "elective professional clients." An elective professional client is a client who meets certain criteria and is eligible to be treated as a professional client for regulatory purposes. This means that they are not entitled to the same level of regulatory protection as retail clients, but they are also not subject to certain regulatory requirements.
Therefore, option D is the correct answer: the Financial Services and Markets Act 2000 regulates the provision of financial advice to all individuals unless they are elective professional clients. It is worth noting that the Act does not differentiate between vulnerable and non-vulnerable individuals when it comes to the regulation of financial advice. However, the regulator, the Financial Conduct Authority (FCA), has specific rules in place to protect vulnerable consumers from harm, and firms are required to take particular care when providing advice to vulnerable individuals.