FCA Authorisation

Section 19 FSMA 2000 provides that no person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is an authorised person or an exempt person — the 'general prohibition'. A regulated activity is defined in s.22 as an activity of a specified kind which is carried on by way of business and relates to a specified investment (or, for certain activities, relates to information about a person's financial standing or involves the provision of claims management services). The Treasury specifies the kinds of activity and investment by order (the Regulated Activities Order). Firms are authorised by the Financial Conduct Authority (and, for prudentially significant firms, jointly with the Prudential Regulation Authority).

Contravening the general prohibition is a criminal offence: under s.23 FSMA, a person who contravenes the general prohibition is guilty of an offence and liable on summary conviction to imprisonment or a fine, or both, and on conviction on indictment to imprisonment for up to two years or a fine, or both, subject to a defence of having taken all reasonable precautions and exercised all due diligence. Most firms providing financial services need to be authorised by the FCA or registered with it, and the FCA publishes application guidance by firm type (e.g. consumer credit lenders, payment and e-money firms, mortgage brokers) alongside a public register of authorised and exempt firms and individuals.