QUESTION OF ETHICS

Q I accept deposits from my clients.

Can I continue to do this as I note that deposit-taking is prohibited post-N2 in the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001?

A The Order prohibits professional firms operating within the Designated Professional Body (DPB) regime from accepting deposits.

However, there is no need to panic.

Excluded from this definition is the deposit of a sum of money received by a practising solicitor in the course of his profession.

This continues the current exemption contained in article 8 of the Banking Act 1987 (Exempt Transactions) Regulations 1997.

Anything more than this would require you to be authorised by the FSA.Please noteInvestment businessOn 1 December 2001, the Financial Services Authority (FSA) becomes the sole regulator under the Financial Services and Markets Act 2000.

'Question of Ethics' will concentrate on this issue in the coming months.Under the Act, most firms now doing non-discrete investment business only will no longer need authorisation and need not return the FSA's opt-in form.

These firms will come within the DPB regime (as members of the Law Society).

There is no need to register with the Society.l Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 020 7242 1222