What the FCA regulates

Understanding whether an activity falls within the scope of FCA regulation is essential for any business operating in the UK financial services sector. The regulatory perimeter can be complex, as it depends not only on the nature of the activity being carried on, but also on the type of investment to which that activity relates. This note explains the FCA’s regulatory framework, including the two-limbed test for determining whether authorisation is required, the meaning of regulated activities and investments, and the exclusions and exemptions that may apply.