Regulated activities

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The general prohibition

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' under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000). Technically, the general prohibition only applies to a person carrying out a regulated activity in the UK but it is not always straightforward working out whether this is actually the case, especially where activities have a cross-border element. For more information, see Practice Notes: Carrying on unauthorised business and breaching the general prohibition and Territorial scope of the general prohibition.

The general prohibition does not apply to a person who is a member of Lloyd's in relation to a regulated activity relating to contracts of insurance written at Lloyd's unless either the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) specifically directs. The FCA can only make such a direction if it considers that giving the direction is necessary or expedient

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Latest Insurance & Reinsurance News

Insurance & Reinsurance weekly highlights—1 May 2025

This week's edition of Insurance & Reinsurance weekly highlights includes: the case of Makin (by his mother and litigation friend) v The Restaurant Muse Ltd and others; the marine insurance market could face losses if premiums continue to soften in the face of mounting claims inflation, a broker warned; BoE speech on bulk purchase annuity sector priorities; CP10/25: PRA consults on supervisory expectations for banks and insurers in managing climate-related risks; EIOPA opens six consultations on the EU IRRD; IAIS publishes Year in Review 2024 report; United Insurance Brokers Limited charged with failure to prevent bribery; cases and decisions; and key dates for your diary.

BoE speech on bulk purchase annuity sector priorities

The Bank of England (BoE) has published a speech by its executive director of insurance supervision, Gareth Truran, at the 22nd Westminster and City Annual Bulk Annuities Conference. Truran sets out three priorities for the bulk purchase annuity (BPA) sector: supporting investment, maintaining resilience, and improving transparency. Truran addresses the PRA’s early experience of Solvency UK, focusing on reforms to the Matching Adjustment (MA) regime and to PRA changes to its supervisory engagement including a dedicated MA Permissions Team which aims reach decisions on MA applications quickly and efficiently. Truran also addresses the PRA’s engagement with the National Wealth Fund and its proposed investment accelerator.

CP10/25: PRA consults on supervisory expectations for banks and insurers in managing climate-related risks

The Prudential Regulatory Authority (PRA) has published consultation paper CP10/25 with proposals on updates to its supervisory expectations for banks and insurers in managing climate-related risks. CP10/25 proposes revisions to supervisory statement SS3/19: Enhancing banks’ and insurers’ approach to managing the financial risks from climate change.  The proposed revisions incorporate feedback from stakeholders, international standards, and consolidate and clarify PRA public feedback on climate risk since SS3/19 was published. The final SS will replace SS3/19 on publication. Responses are sought by 30 July 2025. David Bailey, PRA Executive Director of Prudential Policy has delivered a speech on the proposed updates to SS3/19, noting the updates enhance the PRA’s expectations and do not represent a change in direction to the PRA’s approach to climate risk.

EIOPA opens six consultations on the EU IRRD

The European Insurance and Occupational Pensions Authority (EIOPA) has launched six consultations papers (CPs), all related to the implementation of the EU Insurance Recovery and Resolution Directive (IRRD), which is set to become operational in 2027. The CPs propose draft guidelines and technical standards covering key aspects such as pre-emptive recovery plans, resolution plans and resolvability of insurance undertakings and groups. Responses to all six CPs are sought by 31 July 2025.

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