Glossary
An activity that may only be carried on with authorisation from the financial regulator, or under an available exemption.
Authorisation and Regulated Activities
from Financial Regulation
Any firm wishing to carry on a regulated activity in the UK — such as accepting deposits, managing investments, or arranging insurance — must obtain authorisation from the FCA (or PRA, for dual-regulated firms) under Part 4A of FSMA. Operating without authorisation is a criminal offence. The Regulated Activities Order (RAO) defines the precise scope of activities that trigger this requirement. Lawyers advise clients on whether their business model falls within the regulatory perimeter — a question that has become increasingly complex as fintech, crypto, and platform-based models blur traditional boundaries. The authorisation process itself involves demonstrating adequate resources, competent management, and appropriate systems and controls.
FCA (Financial Conduct Authority)
The UK regulator responsible for the conduct of financial services firms and the integrity of financial markets.
PRA (Prudential Regulation Authority)
The Bank of England subsidiary that supervises the financial safety and soundness of banks, building societies, insurers, and major investment firms.
FSMA (Financial Services and Markets Act 2000)
The primary legislation governing the regulation of financial services in the UK, establishing the framework within which the FCA and PRA operate.
UK MAR (Market Abuse Regulation)
The UK regulation prohibiting insider dealing, unlawful disclosure of inside information, and market manipulation in respect of financial instruments.
KYC (Know Your Customer)
The process by which regulated firms verify the identity and assess the risk profile of their clients before establishing a business relationship.
SAR (Suspicious Activity Report)
A report filed with the National Crime Agency when a firm knows or suspects that a transaction or activity involves the proceeds of crime or terrorist financing.
Consumer Duty
The FCA's overarching standard requiring firms to act to deliver good outcomes for retail customers, covering products, price, understanding, and support.
Operational Resilience
The ability of a financial firm to prevent, adapt to, respond to, recover from, and learn from operational disruptions.