Powered by Lexis+®
Jurisdiction(s):
United Kingdom
United Kingdom
View all Glossary Terms Related Content
CASE STUDY
“LexisLibrary gives us the most relevant and recent cases and always has the latest information on them. It makes research so much easier. We're more cost-effective for our clients and more efficient each day”
AdvocatesAccess all documents on Article 70 exclusion
Article 70 exclusion meaning
Published by a LexisNexis Financial Services expert
What does Article 70 exclusion mean?
In corporate M&A practice, “Article 70 exclusion” describes the carve‑out that allows professionals to arrange, deal in, and advise on share sales of a body corporate without FCA authorisation where the transaction is genuinely the sale or purchase of the business via its shares. It is a statutory concept in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), article 70.
The exclusion removes the regulated activities of:
- Dealing in investments as principal or agent.
- Making arrangements with a view to transactions in investments.
- Advising on investments,
where those activities are carried on in connection with the purchase or sale of shares in a body corporate (for example, a company) and the object of the transaction is the acquisition or disposal of the body corporate’s day‑to‑day control.
Key points:
- Typically relied on by solicitors, accountants and corporate finance advisers in share sale and purchase transactions.
- It is limited to shares in a body corporate and M&A‑style deals; it does not cover portfolio trading or most dealings in debt securities or derivatives.
- It does not disapply the financial promotion regime.
The RAO applies uniformly across England & Wales, Scotland and Northern Ireland. There is...
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.
View the related UK Parliament Acts about Article 70 exclusion
UK PARLIAMENT ACTS
Financial Services and Markets Act 2000 (2000 c 8)
Financial Services and Markets Act 20002000 CHAPTER 8An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.[14th June 2000]BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—Part I . . .1 . . .. . .2 . . .. . .3 . . .[3A . . .]4 . . .5 . . .6 . . .[. . .][6A . . .]. . .7 . . .. . .8 . . .9 . . .10 . . .11 . . .. . .12 . . .13 . . .. . .14 . . .15 . . .16 . . .17 . . .18 . . .[Part 1A The Regulators][Chapter 1 The Financial Conduct Authority][The Financial Conduct Authority][1A The Financial Conduct Authority][The FCA's general duties][1B The FCA's general duties][1C The consumer protection objective][1D The integrity objective][1E The competition objective][Interpretation of terms used in relation to FCA's general duties][1F Meaning of “relevant markets” in strategic objective][1G Meaning of “consumer”][1H Further interpretative provisions for sections 1B to 1G][1I Meaning of “the UK financial system”][Modifications applying if core activity not regulated by PRA][1IA Modifications applying if core activity not regulated by PRA][Power to amend objectives][1J Power to amend objectives][Recommendations][1JA Recommendations by Treasury in...
