What does 'by way of business' mean?
What does 'by way of business' mean?

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

  • What does 'by way of business' mean?
  • Treasury definitions of 'by way of business'
  • Deposit-taking business
  • Investment business
  • Arranging and advising on home finance transactions
  • Managing investments—occupational pension schemes
  • Insurance mediation activity
  • Consumer credit
  • Other regulated activities
  • Factors to determine whether an activity is carried on by way of business
  • more

An activity is only a regulated activity if it is an activity which is carried out by way of business in the UK. The Financial Services and Markets Act 2000 (FSMA 2000) does not define what is meant by the phrase which leaves it its natural meaning. Whether or not an activity is carried on by way of business is ultimately a question of judgment. There are however specific situations in which activities will be carried on by way of business which have been defined for a limited number of activities by the Treasury under its powers under FSMA 2000. This Practice Note explains how the Treasury's interpretation of business applies to those groups of activity. For more information about whether or not an activity is a regulated activity, see Practice Note: What are regulated activities? For more information about the carrying on of regulated activities in the UK, see Practice Note: Territorial scope of the general prohibition.

Treasury definitions of 'by way of business'

The Treasury has the power under FSMA 2000 to change the meaning of the business element by including or excluding certain things from the term 'by way of business'. It has defined the situations in which activities will be carried on by way of business for a limited group of activities. This is in order