Prepare your BNPL business for FCA regulation
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UK Statutory Instrument
2001
United Kingdom
Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
At a glance
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Any Person 4
Plus 2 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Respond to FCA enforcement action or investigation
- 1 step
Start offering consumer credit to customers
- 2 steps
Consumer credit compliance quick-check
- 1 step
Start a financial services business
- 1 step
Start a fintech business
- 1 step
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Direct — cites this Act
4 guidesSupporting — topic alignment
15 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Any Person also bound by 2338 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 169 duties
- Merchant Shipping Act 1995 1995 144 duties
- Insolvency (England and Wales) Rules 2016 2016 101 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 95 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part I — GENERAL
Browse 3 other sections in this Part — procedural / definitional / commencement
Part II — SPECIFIED ACTIVITIES
Revocation of certificate on request
Other duties (1) — Crown / regulator
- FCA must revoke certificates on request and provide written notice Statutory regulator
False claims to be a certified person
Unlimited fine- Claim to be a certified person when not Any Person
- Make false claim of being a certified person Any Person
Record of certified persons
Other duties (1) — Crown / regulator
- FCA must include all certified persons in the public record Statutory regulator
Browse 247 other sections in this Part — procedural / definitional / commencement
Sums paid by certain persons
Sums received in consideration for the issue of debt securities
Effecting and carrying out contracts of insurance
Community co-insurers
Breakdown insurance
Application of sections 327 and 332 of the Act to insurance market activities
Dealing in investments as principal
Absence of holding out etc.
Dealing in contractually based investments
Acceptance of instruments creating or acknowledging indebtedness
Issue by a company of its own shares etc.
Risk management
Other exclusions
Dealing in investments as agent
Deals with or through authorised persons
Risk management
Other exclusions
Arranging deals in investments
Arrangements not causing a deal
Enabling parties to communicate
Arranging transactions to which the arranger is a party
Arranging deals with or through authorised persons
Arranging transactions in connection with lending on the security of insurance policies
Arranging the acceptance of debentures in connection with loans
Provision of finance
Introducing
Arrangements for the issue of shares etc.
International securities self-regulating organisations
Other exclusions
Managing investments
Attorneys
Other exclusions
Safeguarding and administering investments
Acceptance of responsibility by third party
Introduction to qualifying custodians
Activities not constituting administration
Other exclusions
Sending dematerialised instructions
Instructions on behalf of participating issuers
Instructions on behalf of settlement banks
Instructions in connection with takeover offers
Instructions in the course of providing a network
Other exclusions
Establishing etc. a collective investment scheme
Establishing etc. a pension scheme
Advising on investments
Advice given in newspapers etc.
Other exclusions
Advice on syndicate participation at Lloyd’s
Managing the underwriting capacity of a Lloyd’s syndicate
Arranging deals in contracts of insurance written at Lloyd’s
Funeral plan contracts
Plans covered by insurance or trust arrangements
Regulated mortgage contracts
Arranging administration by authorised person
Administration pursuant to agreement with authorised person
Agreeing to carry on specified kinds of activity
Overseas persons etc
Trustees, nominees and personal representatives
Activities carried on in the course of a profession or non-investment business
Activities carried on in connection with the sale of goods or supply of services
Groups and joint enterprises
Activities carried on in connection with the sale of a body corporate
Activities carried on in connection with employee share schemes
Overseas persons
Acting as trustee or depositary of an AIF
Acting as trustee or depositary of a UK UCITS
Activities carried on by a provider of relevant goods or services
Activities carried on by certain energy suppliers
Activities carried on by reason of providing pensions guidance ...
Activities carried on by registered social landlords
Activities carried on in relation to a relevant agreement in relation to land
Activities for which no fee is paid
Activities in relation to certain agreements relating to land
Activities in relation to certain regulated credit agreements
Activities in relation to debentures and bonds
Activities where person has a connection to the agreement
Administering a benchmark
Administration of a benchmark by the FCA
Administration of a specified benchmark by the FCA
Administration pursuant to agreement with authorised person
Advice given by reason of providing pensions guidance ...
Advice given in the course of administration by authorised person
Advising on conversion or transfer of pension benefits
Advising on regulated credit agreements for the acquisition of land
Advising on regulated home purchase plans
Advising on regulated home reversion plans
Advising on regulated mortgage contracts
Advising on regulated sale and rent back agreements
Applications for certificates
Arrangements made in the course of administration by authorised person
Arranging administration by authorised person
Arranging contracts , plans or agreements to which the arranger is a party
Arranging regulated home purchase plans
Arranging regulated home reversion plans
Arranging regulated mortgage contracts
Arranging regulated sale and rent back agreements
Specified activities: general
Accepting deposits
Sums received by solicitors etc.
Sums received by persons authorised to deal etc.
Funds received for payment services
Sums in exchange for qualifying stablecoin
Issuing qualifying stablecoin
Safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets
Article 9N exclusion: group activity
Article 9N exclusion:introductions
Article 9N exclusion: temporary settlement arrangements
Article 9N exclusion: other exclusions
Operating a qualifying cryptoasset trading platform
Dealing in qualifying cryptoassets as principal
Article 9T exclusion:absence of holding out etc.
Article 9T exclusion: other exclusions
Dealing in qualifying cryptoassets as agent
Article 9W: exclusions
Arranging deals in qualifying cryptoassets
Article 9Y exclusion: arrangements not causing a deal
Article 9Y exclusion: introducing
Activities carried on for the sale of goods or supply of services
Activities incidental to the carrying on of a profession or business
Article 9Y exclusion: enabling parties to communicate
Article 9Y exclusion: arranging transactions to which the arranger is a party
Article 9Y exclusion: trustees, nominees and personal representatives
Article 9Y: other exclusions
Qualifying cryptoasset staking
Article 9Z6 exclusion: introducing
Article 9Z6 exclusion: enabling parties to communicate
Article 9Z6 exclusion: technical services exclusion
Transformer vehicles: insurance risk transformation
Transformer vehicles: insurance risk transformation
Activities carried on by members of the legal profession etc
Other exclusions
Information society services
Other exclusions
Activities carried on by members of the legal profession etc
Other exclusions
Other exclusions
Other exclusions
Providing pensions guidance ...
Providing Targeted Support
Insolvency practitioners
Exempt agreements: exemptions relating to the nature of the lender
Exempt agreements: exemptions relating to the nature of the borrower
Arranging administration by authorised person
Administration pursuant to agreement with authorised person
Other exclusions
Exempt agreements: exemptions relating to the nature of the hirer
Meaning of consumer etc.
Local authorities
Other exclusions
Other exclusions
Arranging administration by authorised person
Administration pursuant to agreement with authorised person
Other exclusions
Arranging administration by authorised person
Administration pursuant to agreement with authorised person
Other exclusions
ESG ratings
Regulated products and services
Unregulated benchmarks
Unregulated credit ratings
Intra-group ratings
Private use
Ancillary non-commercial provision
Public authorities, central banks and international organisations
Accreditation or certification
Regulatory or legal requirement
Proxy advice
Other exclusion
Interpretation
Local authorities
Swiss mutual recognition firms
Assisting in the administration and performance of a contract of insurance
Bidding in emissions auctions
Business Angel-led Enterprise Capital Funds
Claims management on behalf of an insurer etc.
Credit broking
Dealing by a company in its own shares
Debt adjusting
Debt administration
Debt-collecting
Debt-counselling
Depositaries of UK UCITS and AIFs
Dormant account funds
Electronic money institutions
Entering into and administering regulated home purchase plans
Entering into and administering regulated home reversion plans
Entering into and administering regulated sale and rent back agreements
Establishing etc. a collective investment scheme
Exclusion of electronic money from the compensation scheme
Exempt agreements: exemption relating to the purchase of land for non-residential purposes
Exempt agreements: exemptions relating to nature of agreement
Exempt agreements: exemptions relating to number of repayments to be made
Exempt agreements: exemptions relating to supply of essential services
Exempt agreements: exemptions relating to the nature of the agreement
Exempt agreements: exemptions relating to the total charge for credit
Exempt agreements: provision qualifying articles 60E and 60F
Funds received for payment services
Green deal plans
Information society services
Insolvency practitioners
Interpretation
Interpretation of Chapter 14A etc.
Introducing by individuals in the course of canvassing off trade premises
Introducing to authorised persons etc.
Issuing electronic money
Large risks contracts where risk situated outside the United Kingdom
Local authorities
... Managers of UCITS and AIFs
Managers of UK UCITS and AIFs
Managing an AIF
Managing a UK UCITS
Meaning of “consumer”
Meaning of “consumer” etc.
Meaning of consumer etc.
Miscellaneous exclusions
Mortgage contracts which are not regulated mortgage contracts
Obtaining information from certified persons etc.
Operating a collective investment scheme in relation to a UK UCITS or an AIF
Operating a multilateral trading facility
Operating an electronic system for public offers of relevant securities
Operating an electronic system in relation to lending
Operating an organised trading facility
Other exclusions
Payment institutions
Persons certified as small issuers etc.
Persons excluded from managing an AIF
Persons seeking to use the exemption under Article 2.1(j) of the markets in financial instruments directive
Providing basic advice on stakeholder products
Providing pensions guidance ...
Provision of information – contracts of insurance
Provision of information on an incidental basis
Publicly available factual data and subscription services
Registered consumer buy-to-let mortgage firms
Regulated consumer hire agreements
Regulated credit agreements
Revocation of certificate on FCA ’s own initiative
Rules prohibiting the issue of electronic money at a discount
Schedule
Securitisation repositories
Specified benchmarks
Sums received in exchange for electronic money
The activity
Total charge for credit
Trade repositories
Transaction to which the broker is a party
Transformer vehicles: insurance risk transformation
Part 3A — SPECIFIED ACTIVITIES IN RELATION TO INFORMATION
Browse 6 other sections in this Part — procedural / definitional / commencement
Activities carried on by members of the legal profession, etc
Other exclusions
Meaning of “consumer” etc.
Operating a pensions dashboard service
Providing credit information services
Providing credit references
Part 3B — CLAIMS MANAGEMENT ACTIVITIES IN GREAT BRITAIN
Browse 18 other sections in this Part — procedural / definitional / commencement
Advice, investigation or representation in relation to an employment related claim
Advice, investigation or representation in relation to a personal injury claim
Advice, investigation or representation in relation to a financial services or financial product claim
Advice, investigation or representation in relation to a housing disrepair claim
Advice, investigation or representation in relation to a claim for a specified benefit
Advice, investigation or representation in relation to a criminal injury claim
Certain providers of referrals
Claims management activity conducted an independent trade union
Claims management activity conducted by a charity or not-for-profit agency
Claims management activity conducted by a medical defence union
Claims management activity conducted by an insurance intermediary
Claims management activity conducted by a person appointed by a statutory or other public body
Claims management activity conducted by a students’ union
Claims management activity conducted by legal professionals
Claims management activity conducted by the Motor Insurers’ Bureau
Seeking out, referrals and identification of claims or potential claims
Services in connection with counterclaims and claims against third parties
Specified kinds of claims management activity
Part III — SPECIFIED INVESTMENTS
Browse 29 other sections in this Part — procedural / definitional / commencement
Investments: general
Deposits
Contracts of insurance
Shares etc.
Instruments creating or acknowledging indebtedness
Government and public securities
Instruments giving entitlements to investments
Certificates representing certain securities
Units in a collective investment scheme
Rights under a pension scheme
Options
Futures
Contracts for differences etc.
Lloyd’s syndicate capacity and syndicate membership
Funeral plan contracts
Regulated mortgage contracts
Rights to or interests in investments
Alternative finance investment bonds
Qualifying cryptoassets
Qualifying stablecoin
Consumer hire agreement
Credit agreement
Electronic money
Emission allowances
Greenhouse gas emissions allowances
Pensions in respect of which information is requested or provided using a pensions dashboard service
Regulated home purchase plans
Regulated home reversion plans
Regulated sale and rent back agreements
Part IV — CONSEQUENTIAL PROVISIONS
Browse 2 other sections in this Part — procedural / definitional / commencement
Part V — UNAUTHORISED PERSONS CARRYING ON INSURANCE DISTRIBUTION ACTIVITIES
Members of designated professional bodies
- Designated professional bodies must notify the FCA of insurance distributors Any Person
- Notify FCA of members carrying out exempt insurance distribution activities Any Person
Browse 4 other sections in this Part — procedural / definitional / commencement
Interpretation
Duty to maintain a record of unauthorised persons carrying on insurance distribution activities
Exclusion from record where not fit and proper to carry on insurance distribution activities
Exclusion from the record where FCA has exercised its powers under Part XX of the Act
Part 6 — MISCELLANEOUS
Browse 3 other sections in this Part — procedural / definitional / commencement
Disapplication of section 49(2) of the Act
Application of section 137B of the Act to backing assets for qualifying stablecoin
Application of section 137B of the Act to safeguarding of qualifying cryptoassets
Schedules
Browse 91 other Schedules — structural / supplementary
CONTRACTS OF INSURANCE
Financial Instruments and Investment services and activities
Relevant Text of the Insurance Distribution Directive
SPECIFIED BENCHMARKS
ADDITIONAL ACTIVITIES INCLUDED IN THE ACTIVITY OF MANAGING AN AIF LISTED IN PARAGRAPH 2 OF ANNEX I TO THE ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE
PERSONS EXCLUDED FROM REGULATED ACTIVITY OF MANAGING AN AIF
Accident
Motor vehicle liability
Aircraft liability
Liability of ships
General liability
Credit
Suretyship
Miscellaneous financial loss
Legal expenses
Assistance
Sickness
Land vehicles
Railway rolling stock
Aircraft
Ships
Goods in transit
Fire and natural forces
Damage to property
Life and annuity
Marriage and birth
Linked long term
Permanent health
Social insurance
Tontines
Capital redemption contracts
Pension fund management
Collective insurance etc.
Transferable securities;
Options, futures, swaps, forward rate agreements and any other derivative...
Emission allowances consisting of any units recognised for compliance with...
Reception and transmission of orders in relation to one or...
Safekeeping and administration of financial instruments for the account of...
Money-market instruments;
Execution of orders on behalf of clients.
Granting credits or loans to an investor to allow the...
Units in collective investment undertakings;
Dealing on own account.
Advice to undertakings on capital structure, industrial strategy and related...
Options, futures, swaps, forward rate agreements and any other derivative...
Portfolio management.
Foreign exchange services where these are connected to the provision...
Options, futures, swaps, forwards and any other derivative contracts relating...
Investment advice.
Investment research and financial analysis or other forms of general...
Options, futures, swaps, and any other derivative contract relating to...
Underwriting of financial instruments and/or placing of financial instruments on...
Services relating to underwriting.
Option, futures, swaps, forwards and any other derivative contracts relating...
Placing of financial instruments without a firm commitment basis.
Investment services and activities included in Part 3 of this...
Derivative instruments for the transfer of credit risk;
Operation of an MTF .
Financial contracts for differences;
Operation of an OTF. ”
The following persons are excluded from the definition of “investment...
Interpretation
This paragraph applies if— (a) P's main business is not—...
The FCA may make rules specifying the following for the...
The exemption in paragraph 1(o) — (a) only applies to...
References in this Schedule to “regulated markets”, “MTFs” and “trading...
Any expression used in this Part of this Schedule which...
For the purpose of the exemption in paragraph 1(d), an...
“Direct electronic access”
“High-frequency algorithmic trading”
High message intraday rate
This Part has effect for the purposes of article 4(5)....
Article 2.1(2) of the insurance distribution directive has effect—
Article 2.1(4) of the insurance distribution directive has effect as...
Article 2.2 of the insurance distribution directive has effect as...
MEANING OF “BORROWER” IN RELATION TO GREEN DEAL CREDIT AGREEMENTS
Investment management.
Administration— (a) legal and fund management accounting services;
Marketing.
Interpretation of this Schedule
A securitisation special purpose entity.
An AIFM, the registered office of which is not in...
For the purposes of paragraph 1, in Article 4(1)(o) of...
In this Schedule— “ parent undertaking ” has the meaning...
Persons excluded
An AIFM in so far as it manages one or...
The trustees and managers of an occupational pension scheme within...
A national central bank.
A national, regional or local government or body or other...
A holding company.
An employee participation scheme or employee savings scheme.
Other sections — not classified into a Part
These sections sit outside the numbered Parts — usually provisions added or moved by later amendments.
Browse 7 other sections
Interpretation
Paragraph 2 of Part 1: “money-market instruments”
Paragraphs 6 and 7 of Part 1: wholesale energy products that must be physically settled
Paragraph 7 of Part 1: treatment of certain derivative financial instruments
Paragraph 10 of Part 1: further derivative contracts included
Paragraph 10 of Part 1: treatment of certain derivative contracts
(a) Administration— (i) legal and fund management accounting services;
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- Transaction reporting resources | FCA (opens in a new tab) from FCA Detailed Guidance
- Cryptoasset regulated activities: FSMA and the FCA Handbook | FCA (opens in a new tab) from FCA Detailed Guidance
- Automated advice: existing rules and guidance | FCA (opens in a new tab) from FCA Detailed Guidance
- Changes to the Regulated Activities Order | FCA (opens in a new tab) from FCA Detailed Guidance
- Electronic Commerce Directive: operation after the transition period | FCA (opens in a new tab) from FCA Detailed Guidance
- How to apply for authorisation or registration | FCA (opens in a new tab) from FCA Detailed Guidance
- Thinking of becoming a bank | Bank of England (opens in a new tab) from PRA Detailed Guidance
- New Bank Start-Up Unit | Bank of England (opens in a new tab) from PRA Detailed Guidance
- Variation of permission | Bank of England (opens in a new tab) from PRA Detailed Guidance
- UK insurance special purpose vehicles | Bank of England (opens in a new tab) from PRA Detailed Guidance
- ... and 31 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
FCA
PrimaryFinancial Conduct Authority
Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …
Prudential Regulation Authority
Part of the Bank of England. Prudentially regulates and supervises around 1,292 banks, building societies, credit unions, insurers, and major investment firms. …
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Regulators
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