Territorial scope of the general prohibition

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

  • Territorial scope of the general prohibition
  • Where and how does the general prohibition apply?
  • Outward and inward territorial scope
  • Territorial scope under FSMA 2000, s 418
  • Considerations for overseas persons
  • Exclusions for overseas persons
  • Disapplication of the overseas person exclusions
  • Home finance transaction activities
  • Territorial scope of regulated claims management activities

Territorial scope of the general prohibition

Where and how does the general prohibition apply?

There is a fundamental prohibition at the heart of the UK regulatory regime whereby a person cannot carry out a regulated activity in the UK, or purport to do so, unless they are either: authorised or exempt. This is known as the 'general prohibition' (section 19 of the Financial Services and Markets Act 2000 (FSMA 2000)). Technically the general prohibition only applies to a person carrying out or purporting to carry out a regulated activity in the UK. However the circumstances in which a person is carrying out a regulated activity in the UK are not fully defined in the Financial Services and Markets Act 2000 (FSMA 2000) and so whether an activity is regulated will depend on the general law. This Practice Note looks at the territorial application of the general prohibition. For more information about the general prohibition, see Practice Note: The general prohibition and implications of its breach.

Outward and inward territorial scope

In many cases, it is quite straightforward to identify where an activity is carried on. For example, where a person is undertaking a regulated activity wholly in the UK from a place of business in the UK with people in the UK, then it is clear that the territorial provision of the general prohibition is satisfied.

However it is

Popular documents