(1)No person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is—
(a)an authorised person; or
(b)an exempt person.
(2)The prohibition is referred to in this Act as the general prohibition.
Definitions used in section 19
- regulated activity
“regulated activity” has the meaning given in section 22;
Defined in s.417(1) · see it in the full Act- authorised person
“authorised person” has the meaning given in section 31(2);
Defined in s.417(1) · see it in the full Act(2) In this Act “authorised person” means a person who is authorised for the purposes of this Act.
Defined in s.31(2) · see it in the full Act- exempt person
“exempt person”, in relation to a regulated activity, means a person who is exempt from the general prohibition in relation to that activity as a result of an exemption order made under section 38(1) or as a result of section 39(1) or ... 285 ;
Defined in s.417(1) · see it in the full Act
Cases considering section 19 (93)
Kession Capital Ltd (in Liquidation) v KVB Consultants Ltd and others
Establishes the general prohibition against conducting regulated activities unless authorised or exempt. It supplies the starting point for the appointed-representative exemption (see paras [4], [41]). Labels the statutory restriction in section 19 as the general prohibition (see para [4]).
KVB Consultants Limited & Ors v Jacob Hopkins McKenzie Limited & Ors
The general prohibition was used to explain that regulated activity outside the permission and responsibility accepted under section 39 would be unlawful. Operating a collective investment scheme without relevant permission would not impose section 39 responsibility on the principal (see paras [17]-[19]; [54]).
Adams v Options UK Personal Pensions LLP
The intermediary contravened the general prohibition by carrying on the regulated activities of advising on investments and arranging deals in investments without authorisation (see paras [82]; [101]).
- Personal Touch Financial Services Ltd v Simplysure Ltd & Anor
- O'Neil v Gale
- Napoli v R.
- Napoli & Anor v R.
- Helden v Strathmore Ltd
- Greaves & Ors v R
- Brinphar Ltd & Ors v Ever Bright Inn Ltd & Ors
- Jeffrey Orchard & Anor v Daljit Dhillon
- Priti Odhavji v Caroline Tighe & Ors
- 4VVV Ltd & Ors v Nicholas Spence & Ors
- The Financial Conduct Authority v London Property Investments (UK) Limited (t/a LPI Emergency Property Finance) & Ors
- Afan Valley Limited (in administration) & Ors v Lupton Fawcett (a firm) & Ors
- John Baylis & Anor v Syed Ali Haider & Ors
- The Financial Conduct Authority v Robin Scott Forster & Ors
- Payward, Inc & Ors v Maxim Chechetkin
- Trafalgar Multi Asset Trading Company v James David Hadley & Anor.
- The Financial Conduct Authority v London Property Investments (UK) Limited (trading as LPI Emergency Property Finance) & Ors
73 more judgments, and what each says about section 19, are in the case-law panel in the full Act.
Explanatory note
Amendments and notes
2 notes from legislation.gov.uk
Modifications
- C63S. 19(1) excluded (temp.) by S.I. 2013/1773, reg. 72(6B)(a) (as inserted (16.6.2014) by The Alternative Investment Fund Managers Order 2014 (S.I. 2014/1292), arts. 1(2), 4(5)(b))(as amended by S.I. 2014/1313, arts. 1, 2(a))
- C64S. 19(1)(b) modified by S.I. 2018/1149, reg. 47 (as inserted (1.3.2019) by The Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019 (S.I. 2019/405), regs. 1(2), 3)
55.This section contains the basic prohibition on unauthorised persons carrying on regulated activities in the United Kingdom. It is referred to in the Act as “the general prohibition” and prohibits persons who are not authorised or exempt under Part III from carrying on any regulated activity in the United Kingdom. Section 418 elaborates on when regulated activities will be considered to be carried on in the United Kingdom. Contravention of the general prohibition is a criminal offence (see section 23). Agreements made in the course of carrying on an activity in contravention of the general prohibition may be unenforceable (see sections 26, 27 and 29).