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James Wilson, a solicitor, is the executor of a will for a longstanding client. The client and beneficiaries instruct James to provide investment services in winding up the estate in his capacity as trustee.

Which of the following statements best describes the trustee/PR exclusion?

The trustee/PR exclusion will not apply to a solicitor who is the executor of a will and who also provides investment services in winding up the estate in his capacity as trustee or PR, even if he receives no additional remuneration for so acting.

A solicitor who is the executor of a will and who also provides investment services in winding up the estate in his capacity as trustee or PR may not charge for his activities as trustee/PR, even if the remuneration for the regulated activities is calculated by reference to the 'time spent' on such activities whilst doing his probate work.

The cost for the time spent by the solicitor on any investment activities need not be included within the overall bill for the client and may be separately billed.

The trustee/PR exclusion will only apply where the solicitor does not receive any remuneration from his client.

The trustee/PR exclusion may apply even where the solicitor receives remuneration from his client.

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The trustee/PR exclusion applies when the solicitor is remunerated by the client for regulated investment activities, as long as the solicitor does not receive additional remuneration beyond what is received for trustee or PR services. The investment work must be included within the overall bill for the trustee or PR services and not billed separately. This ensures the solicitor is not being 'additionally remunerated' for the investment management duties.

Key Point: This question tests the application of the trustee/PR exclusion under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. Understanding this exclusion helps ensure that solicitors properly manage billing and remuneration in the context of providing investment services while acting as a trustee or PR.

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Financial ServicesUnit 3Chapter 4: The Financial Services Regulatory

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