Exclusions applying to the specified activities relating to investments
Exclusions applying to the specified activities relating to investments

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Exclusions applying to the specified activities relating to investments
  • The general prohibition
  • MiFID override
  • Dealing in investments as principal
  • Dealing in investments as agent
  • Bidding in emissions auctions
  • Arranging deals in investments
  • What does 'arranging' mean?
  • Exclusions for arranging activities
  • Operating a multilateral trading facility (MTF) or organised trading facility (OTF)
  • More...

This Practice Note sets out a number of exclusions which can apply in relation to specific regulated activities that relate to investments. It briefly explains the fundamental concepts relating to financial services regulation. In particular, it sets out the concept of the 'general prohibition' under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) (which provides that a person cannot carry out regulated activities in the UK unless that person is authorised or exempt).

The general prohibition

Under FSMA 2000, s 19, a person cannot carry out regulated activities in the UK unless that person is authorised or exempt. This is known as the general prohibition. For information about the territorial scope of the general prohibition, see Practice Note: Territorial scope of the prohibition.

An authorised person is a person who:

  1. has been given permission by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) under FSMA 2000, Pt 4A to carry on certain regulated activities; or

  2. is passporting its services into the UK under a EEA directive (eg the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II))

An exempt person is (in relation to the carrying on of a regulated activity) a person who is exempt from the general prohibition in respect of that activity as a result of being a person who:

  1. falls within Financial Services and Markets

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