The FCA and PRA, the Handbook and regulated activities
The general prohibition
Section 19 FSMA imposes the general prohibition: no person may carry on a regulated activity in the UK by way of business unless authorised or exempt. A regulated activity has two elements under the Regulated Activities Order (RAO): a specified activity (for example accepting deposits, dealing, arranging, advising, entering into a regulated mortgage contract or debt adjusting) and a specified investment (for example deposits, insurance contracts, shares, units or regulated mortgage contracts). Both must be present.
The Handbook and permissions
The FCA Handbook contains high-level standards (PRIN, SYSC, FIT, COCON), business standards and specialist sourcebooks; the PRA Rulebook covers prudential rules. Rules are binding; guidance indicates expected practice but is not itself a rule. Firms need permission for each regulated activity and must satisfy the threshold conditions. The Senior Managers and Certification Regime (SMCR) imposes approved senior manager responsibilities, certification of material risk takers and conduct rules. Appointed representatives can carry on business under a principal's permission.
Financial promotion
Section 21 restricts invitations or inducements to engage in investment activity unless communicated or approved by an authorised person.
Traps
'Regulated activity' is not the same as a 'regulated market'. The 'by way of business' test excludes one-off private transactions. Arranging a regulated mortgage for a fee is a regulated activity; merely providing information may not be. An appointed representative's principal is responsible for its regulated activities.
Rule of thumb
Ask two questions: is there a specified investment, and is there a specified activity? If either is missing, the general prohibition is not engaged.