The FSMA perimeter is defined by section 22 of, and Schedule 2 to, the Financial Services and Markets Act 2000, given specific content by the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) (the "RAO"). An activity is a regulated activity for FSMA purposes only if it is a specified kind of activity carried on in relation to a specified kind of investment, or carried on in relation to property of any kind.
- Primary statutory source
- FSMA 2000, section 22 and Schedule 2
- Implementing instrument
- Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544)
- Specified activity — accepting deposits
- RAO Article 5 (deposit-taking by banks, building societies and credit unions)
- Specified activity — dealing in investments as principal/agent
- RAO Articles 14 and 21
- Specified activity — arranging deals in investments
- RAO Article 25
- Specified activity — managing investments
- RAO Article 37
- Specified activity — advising on investments
- RAO Article 53
- Specified activity — safeguarding and administering investments
- RAO Article 40 (custody)
- Specified activity — regulated mortgage contracts
- RAO Articles 61–63 (entering into, administering, advising on and arranging regulated mortgages)
- Specified activity — insurance distribution
- RAO Articles 21, 25, 39A, 53 in relation to contracts of insurance (Article 75 / Schedule 1 categories)
- Specified activity — consumer credit and consumer hire
- RAO Articles 60B–60N (credit broking, consumer credit lending, hiring, debt collection, debt administration, debt counselling, debt adjusting, providing credit information services, providing credit references)
- Specified activity — debt collection and debt administration
- RAO Articles 39F and 39G
- Payment services and e-money (parallel regimes)
- Regulated under Payment Services Regulations 2017 (SI 2017/752) and Electronic Money Regulations 2011 (SI 2011/99) where in scope, in addition to FSMA permissions where activities also fall within the RAO
- Specified investments
- Deposits, e-money, contracts of insurance, shares, debt instruments, government and public securities, units in collective investment schemes, options, futures, contracts for differences, regulated mortgage contracts, home reversion plans, home purchase plans, regulated credit and consumer hire agreements
- Authoritative interpretation
- FCA Perimeter Guidance manual (PERG)
Two-step test: An activity falls within the FSMA perimeter only if (a) it is a specified kind of activity under Part II of the RAO, and (b) it is carried on in relation to a specified kind of investment under Part III of the RAO (or, for some activities, in relation to property of any kind). Both legs must be satisfied. If either is missing, the activity is outside the FSMA perimeter (although it may still be regulated under a parallel regime).
Parallel regimes: Several adjacent regimes sit outside FSMA Part 4A but are administered by the FCA, including the Payment Services Regulations 2017 (SI 2017/752) for payment institutions, the Electronic Money Regulations 2011 (SI 2011/99) for electronic money institutions, and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692). Firms should check whether their activities require authorisation, registration, or both.