General prohibition meaning

Regulated activities and exclusions Section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) bars any individual or entity from undertaking, or holding themselves out as undertaking, a regulated activity in the UK unless they are authorised or exempt under FSMA 2000 (the General Prohibition). Usefully, most activities specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO) are carved out by exclusions. Where you conduct a given activity in a manner that fits an exclusion, you will not contravene the General Prohibition. For additional detail on the General Prohibition, see Practice Notes The general prohibition and implications of its breach and Carrying on unauthorised business and breaching the general prohibition. Most RAO regulated activities are subject to exclusions that can be used where applicable. Exclusions fall into two groupings: exclusions tailored to a specific regulated activity; and exclusions that, in defined situations, span several regulated activities...

This Checklist sets out core topics for firms entering consumer credit, addressing essential management and compliance matters within the Financial Conduct Authority (FCA) framework. It organises themes such as authorisation, threshold conditions, the Senior Managers and Certification Regime (SM&CR), systems and controls, business planning, FCA Principles, the Consumer Duty and continuing regulatory duties, including adherence to the Consumer Credit sourcebook (CONC) and the Consumer Credit Act 1974 (CCA 1974). For fuller guidance, including how the application process works, see Practice Note: FCA authorisation of consumer credit firms. Scope and regulatory status Do the firm’s activities amount to regulated consumer credit activities under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO)? See Practice Notes: The general prohibition and implications of its breach and Regulated activities relating to consumer credit Does the firm offer (or plan to offer) buy now pay later (BNPL)/deferred payment credit (DPC) style products?...

This checklist outlines matters a potential buyer (and its advisers) ought to weigh up when acquiring the share capital or business assets of a firm authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) under the Financial Services and Markets Act 2000 (FSMA 2000), or authorised or registered by the FCA under the Payment Services Regulations 2017, SI 2017/752 (PSRs 2017). It is designed to help purchasers compile a due diligence questionnaire and to flag other central elements of the transaction. It is not exhaustive and additional considerations may arise. Due diligence Authorisations and licences Review the Financial Services Register for the target’s FCA or PRA authorisation under FSMA 2000 and the scope of permissions attached to that authorisation, or for FCA authorisation or registration under the PSRs 2017; also confirm the authorisations and permissions of any group entities. Verify that activities undertaken by the target (and any group members) align with the permissions recorded on the Financial Services Register... ...

Background to and scope of this flowchart An individual who conducts a regulated activity in the UK in the course of business, where no relevant exclusion or exemption applies, must be authorised under the Financial Services and Markets Act 2000 (FSMA 2000). For details and context on the consequences of carrying on a regulated activity without authorisation, consult Practice Note: The general prohibition and implications of its breach. For an explanation of what it means to carry on business in the UK, see Practice Notes: What does 'by way of business' mean? and Territorial scope of the general prohibition. For guidance on exemptions and exclusions that may apply in particular circumstances, refer to Practice Notes: Regulated activities—exempt persons and Exclusions and exemptions relating to the general prohibition—an introduction...

Aim of this flowchart Under section 19 of the Financial Services and Markets Act 2000, anyone who carries on a regulated activity in the UK in the course of business, without an applicable exclusion or exemption, must hold authorisation from the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA). This requirement is referred to as the general prohibition. For further detail on the general prohibition and the scope of regulated activities, consult the Practice Notes: The general prohibition and implications of its breach, and What are regulated activities? This flowchart is intended to assist in deciding whether a person is undertaking the regulated activities of effecting and carrying out contracts of insurance as principal, pursuant to article 10(1) and (2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) (RAO). Any references here to PERG are to the FCA’s Perimeter Guidance Manual, which provides regulatory guidance within the FCA Handbook. It serves as a guide to the FCA Handbook...

In this issue: UK, EU and international regulators and bodies Acountability, culture and social governance Authorisation, approval and supervision Prudential requirements Financial crime and sanctions Investigations, enforcement and discipline Dispute resolution for financial services lawyers Banks and mutuals EU MiFID II Consumer credit, mortgage and home finance Regulation of insurance FSMA regulated pensions activity Payment services and systems Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary UK, EU and international regulators and bodies Regulation to prioritise UK growth over risk-aversion in 2025 Law360, London: Financial watchdogs have vowed, firmly in line with new government objectives, to elevate economic growth above risk-aversion in 2025 — a recalibration that might cut across the recent stress on safeguarding consumers. See: Regulation to prioritise UK growth over risk-aversion in 2025. Acountability, culture and social governance UK...

In this issue EU fundamentals Competition and state aid Data protection and cybersecurity Financial services Energy Environment Insurance and reinsurance Life sciences Regulatory TMT Daily and weekly news alerts New and updated content Trackers EU fundamentals EU Law—key developments in 2025 and horizon scanning for 2026 This News Analysis distils the principal EU developments from 2025 and highlights what is expected in 2026. See News Analysis: EU Law—key developments in 2025 and horizon scanning for 2026. Competition and state aid Antitrust—Google and Alphabet v Commission An application for annulment has been submitted to the General Court in Case T-794/25, Google and Alphabet v Commission, contesting the Commission’s prohibition decision on Adtech and data-related practices (abuse of dominance) (AT.40670), under Article 102 TFEU and Article 54 of the EEA Agreement—see further, application. See News Analysis: EU Competition law—daily round-up (12/01/2026). Foreign Subsidies Regulation—Commission’s guidelines The Commission...

In this edition: UK antitrust EU antitrust EU Foreign Subsidies Regulation EU State aid Daily and weekly news alerts LexTalk®Competition: a Lexis®Nexis community New and updated content Caselex UK antitrust Public Transport Ticketing Schemes Block Exemption: CMA launches consultation on proposed recommendations The CMA has opened a consultation on its provisional recommendation to advise the Secretary of State for Business and Trade that the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order (the Order) should remain in force beyond its current term as a continuing block exemption. This follows an April 2024 call for inputs on the Order. First brought into effect in 2001, the Order removes specified integrated ticketing arrangements—agreed between transport operators—from the scope of the Chapter I prohibition in the Competition Act, and it was most recently extended in 2016. The block exemption offers transport operators greater legal certainty to develop and provide ticketing schemes that enable passengers to purchase...

The general prohibition Under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), no person may undertake regulated activities in the UK unless they are authorised or fall within an exemption. This is referred to as the general prohibition. For guidance on the territorial reach of this restriction, see Practice Note: Territorial scope of the prohibition. Under FSMA 2000, s 31, an authorised person is one who: has been granted permission by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) under FSMA 2000, Pt 4A to carry on specified regulated activities; or is a Gibraltar-based person with a Schedule 2A permission to carry on one or more regulated activities. Please note that this latter provision, inserted by section 22(1), (2) of the Financial Services Act 2021, is not yet in force...

FORTHCOMING CHANGES : At Budget 2025, the government stated it will legislate via Finance Bill 2026 (also known as Finance (No 2) Bill 2024–26) to introduce measures targeting promoters or enablers of marketed tax avoidance. The provisions are set out in Part 6 of the Bill (as introduced on 4 December 2025) and cover: updates to the DOTAS and DASVOIT civil penalty regime so that HMRC can issue DOTAS penalties directly, rather than seeking tribunal approval; a general prohibition on promoting marketed arrangements that have no realistic prospect of success, and a prohibition on promoting arrangements specified in universal stop regulations (USRs). A breach of either prohibition would attract a range of sanctions, including publication, financial penalties and criminal prosecution; promoter action notices (PAN). A PAN would require businesses to cease providing goods or services to promoters of tax avoidance where those goods or services are used in the promotion of avoidance and the promoter is in breach of a USR or stop notice....

There are statutory rules governing a company’s auditor liability and the extent to which it can be curtailed. Before 6 April 2008, a company was prohibited from excusing or indemnifying its auditors for any negligence, default, breach of duty, or breach of trust connected with the company that arose in carrying out the audit of the accounts. That prohibition has since changed, and such protection is now allowed, so long as it is either an indemnity covering the costs of successfully defending proceedings or a liability limitation agreement. Furthermore, additional requirements concerning an auditor’s liability and its caps may apply to a listed company, an AIM company, or a company whose securities are listed on the AQSE Main Market, AQSE Growth Market, or AQSE Trading (previously the NEX Exchange Main Board, NEX Exchange Growth Market, and NEX Exchange Secondary Market), though those matters fall outside the ambit of this Practice Note. Some or all of the statutory measures addressing auditors and liability limitation agreements may equally extend to other companies...

Notwithstanding the provisions of [ insert clause number granting the trustees authority to invest ] the said Trustees shall not (whether in exercise of the investment authority conferred by clause [ insert clause granting the trustees authority to invest ] or of the general power of investment contained in the Trustee Act of 2000, section 3) invest in the shares, stock, debentures, loan stock, or other securities of any company which is, or any of whose subsidiaries are, engaged in any of the following specified activities [ insert details ]...

Under general principles of trust law, a beneficiary’s or settlor’s spouse may serve as a trustee of a settlement without any prohibition. More broadly, there are few limits on eligibility for appointment as trustee; any person with capacity in law to hold the legal title to the trust property can be lawfully appointed as a trustee of that property...

What is the regulatory regime under the Financial Services and Markets Act 2000 (FSMA 2000) Under section 19 of the Financial Services and Markets Act 2000, the general prohibition applies: a person must not carry on a regulated activity in the UK, or even purport to do so, unless they are within one of the permitted categories below. An authorised person (that is, authorised by the Prudential Regulation Authority and/or the Financial Conduct Authority) An exempt person (for example, an appointed representative) For an outline of the UK regime governing regulated activities, see Practice Note: What are regulated activities? An activity is regulated if it is of a ‘specified kind’—as listed in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO 2001), SI 2001/544—and it is carried on by way of business. For further detail on what amounts to carrying on a regulated activity ‘by way of business’ in the UK, refer to Practice Notes: What does ‘by...