Summary

Question 1

What are the questions to ask before carrying on a regulated activity without obtaining FCA authorization?

Answer 1

1) Is the firm carrying out a business?
2) Does the activity involve a “specified investment” under the FSMA?
3) Is the activity capable of being a “regulated activity” under the RAO?
4) Does the activity fall within any of the exclusions in the RAO?
5) Is the activity capable of being an exempt regulated activity under Part XX of the Act?
6) Does the activity fall within the Scope Rules?
If 5 and 6 do not apply, the activity will be mainstream and hence fall under FCA authorization
7) Does the activity comply with the SRA’s Conduct of Business Rules?