P0 Unit 8 S5 - DPB and APF regime

I am struggling with the above section of the core reading and in particular am not clear on
- difference between Exempt and Non-mainstream activity


I believe these two terms mean the same.


- diff between Mainstream and Non-mainstream (eg p11 para 3 says that arranging life cover for an individual is non-mainstream but it sounds rather mainstream to me)

I think that this particular para is a typo in the core reading. I have corrected it for the next version of the ActEd Notes, but as the P0 core reading comes from the profession, it will remain as "non-mainstream".

- diff between Approved Professional Firm (p11 para 2) and Authorised Professional Firm (p11 para 3)


I think that various professions can apply to the FCA for the right to grant authorisation to individual companies. They have to qualify as "approved professional firms" under the FCA legislation. But if they do (and the profession does!) then it gets the right to grant authorisation to individual companies. Companies can then apply direct to the profession to get authorisation, and if they do, the profession grants them ""authorised professional firm" status, which allows then to do mainstream and non-mainstream activities under certain conditions (as spelled out in the notes).


Also on Q161 from the multi choice booklet the answer is B (both true) but I don't see why a DPB firm's only route to conducting mainstream activity is to form an FCA regulated subsidiary (statement I). Couldn't it just seek APF or full FCA authorisation itself? Page 11 para 4 seems to suggest that APF status would allow it to conduct mainstream activity with no need for a subsidiary.


True. But a DPB firm cannot seek FCA authorisation as well. It has to set up a separate company for that business. Can't be DPB and FCA regulated at the same time. And becoming APF means that it is no longer DPB, so that doesn't answer the question of how a DPB company can carry out mainstream activity. You are correct though - if it switched from DPB to APF it could do both.

Grateful for any help