Serjeants' Inn

This Practice Note outlines the general approach to financial services businesses which operate without the correct authorisations. The Practice Note introduces the general prohibition in section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), various exemptions and the criminal offences under sections 23–25. It also provides an introduction to the various remedies available when a firm is in breach of the general prohibition. It introduces the concept of regulated activities and the concepts in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO).

In this Practice Note, Sarah Clarke KC, barrister at 3 Serjeant’s Inn, outlines the process for settling enforcement actions taken by the Prudential Regulation Authority (PRA). This is based on PS23/19 which proposes to simplify the PRA’s settlement discount scheme, and further improve the clarity and transparency of the PRA’s settlement procedures. It sets out the PRA’s approach to settlement prior to 30 January 2024.

This Practice Note outlines the regulators’ approach to enforcement in relation to unauthorised business. It discusses section 380 of the Financial Services and Markets Act 2000, as well as areas such as who is pursued when there is a concern around unauthorised business and remedial activity such as freezing or restraining orders as well as orders for administration or winding up. It provides examples of actions and case law as well as links to the relevant provisions of the Enforcement Guide. This Practice Note should be read in conjunction with the Practice Note on the Unauthorised Business and the approach to enforcement —criminal proceedings. This is part of a set of Practice Notes that provide a guide through the aspects of the unauthorised business regime. The series unpicks an area that can be complex and provides easy to understand direction on this increasingly important area of litigation.

This Practice Note outlines the regulators’ approach to enforcement through criminal proceedings. It discusses section 380 of the Financial Services and Markets Act 2000, as well as areas such as who is pursued when there is a concern around unauthorised business and remedial activity such as freezing or restraining orders and orders for administration or winding up. It provides examples of actions case law and links to the relevant provisions of the Enforcement Guide. This Practice Note should be read in conjunction with the Practice Note on the Unauthorised Business and the approach to enforcement —civil proceedings. This is part of a set of Practice Notes that provide a guide through the aspects of the unauthorised business regime. The series unpicks an area that can be complex and provides easy to understand direction on this increasingly important area of litigation.