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Perimeter Guidance or PERG: Guidance on FCA regulated activities – what you need to understand

FCA regulated activities - what you need to understandFCA regulated activities are described as inside or outside the FCA Perimeter of legislation, a defined perimeter set by the Government and Parliament, and it determines what the FCA do and don’t regulate. They have significant responsibility.

They’re the conduct regulator for around 50,000 financial services firms and financial markets in the UK, and they prudentially regulate around 48,000 firms.

FCA regulated activities: The Perimeter Guidance manual or PERG defines the actual areas that are stated in the regulated activities order in legislation.

FCA regulated activities: This perimeter guidance manual applies, part of the overall FCA Manual applies to;
(1) a person who is considering carrying on activities in the United Kingdom which may fall within the scope of the Act and is seeking guidance on whether he needs to be an authorised person;
(2) a person who seeks to become an authorised person under the Act and who is, or is considering, applying for Part 4A permission to carry on regulated activities in the United Kingdom;
(3) a person who is seeking guidance on whether any communication he may be seeking to make or cause to be made will be a financial promotion and be subject to the restriction in section 21 of the Act;
and
(4) persons generally.

fca regulated activitiesThe purpose of this article is to give guidance about the circumstances in which authorisation is required, or exempt person status is available, including guidance on the activities which are regulated under the Act and the exclusions which are available.fca regulated activities

The Financial Services and Markets Act 2000 (the Act) is the UK legislation under which bodies corporate, partnerships, individuals and unincorporated associations are permitted by the FCA or PRA to carry on various financial activities which are subject to regulation (referred to as regulated activities order).

The FCA regulated activities which are regulated activities are specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the Regulated Activities Order): for example, accepting deposits, managing investments, effecting contracts of insurance, dealing in investments as agent. In general terms, a regulated activity is an activity, specified in the FGSMA Regulated Activities Order, carried on by way of business in relation to one or more of the investments specified in the Regulated Activities Order. Anyone breaching the rules in the FSMA are usually doing so under section 19 – The General Prohibition, or Section 21 – Restrictions on financial promotion.

PERG 2 gives further general guidance on FCA regulated activities and specified investments.

The Act, and the secondary legislation made under the Act, is complex. Although PERG gives guidance about regulated activities and financial promotions, it does not aim to, nor can it, be exhaustive.


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References have been made to relevant provisions in the Act or secondary legislation. However, since reproducing an entire statutory provision would sometimes require a lengthy quotation, or considerable further explanation, many provisions of the Act, or secondary legislation made under the Act, are summarised. For the precise details of the legislation, readers of the manual should, therefore, refer to the Act and the secondary legislation itself, as well as the manual.

PERG uses words and phrases that have specific meanings in the Handbook or in legislation; these may be different from, or more precise than, their usual dictionary meanings. Defined terms used in the text of the Handbook are shown in italics. For the meanings of defined terms used in PERG, see the Glossary.

It is essential that readers refer to these definitions. In the case of those parts of PERG which take the form of Q&A, however, to ensure greater accessibility of the text we have only italicised Handbook terms in those places where we think that it would be helpful to the majority of readers.

     

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