Financial Services and Markets Act 2000, section 22

Regulated activities

Part II Regulated And Prohibited Activities

(1)An activity is a regulated activity for the purposes of this Act if it is an activity of a specified kind which is carried on by way of business and—

(a)relates to an investment of a specified kind; or

(b)in the case of an activity of a kind which is also specified for the purposes of this paragraph, is carried on in relation to property of any kind.

[F141 (1A)An activity is also a regulated activity for the purposes of this Act if it is an activity of a specified kind which is carried on by way of business and relates to—

(a)information about a person's financial standing, F142... [F143 or F143]

F144 (b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F145 (c)administering a benchmark.F145,F141]]

[F146 (1B)An activity is also a regulated activity for the purposes of this Act if it is an activity of a specified kind which—

(a)is carried on by way of business in Great Britain, and

(b)is, or relates to, claims management services.F146]

(2)Schedule 2 makes provision supplementing this section.

(3)Nothing in Schedule 2 limits the powers conferred by [F147subsection (1) [F148 or (1A)F148,F147]] [F147 subsections (1) to (1B)F147] .

(4) “Investment” includes any asset, right or interest [F149 (including where an asset, right or interest is, or comprises or represents, a cryptoasset) F149] .

(5) “Specified” means specified in an order made by the Treasury.

F150 (6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F151 (6A) For the purposes of subsection (1A)(c), “benchmark” has the meaning given by Article 3 of the EU Benchmarks Regulation 2016, and “administering” a benchmark means acting as an administrator of that benchmark within the meaning of that Article. F151]

Read section 22 in the full Act → Definitions (3) Cases (58)

Definitions used in section 22

claims management services

(1) In this Act “claims management services” means advice or other services in relation to the making of a claim.

Defined in s.419A(1) · see it in the full Act
cryptoasset

“cryptoasset” means any cryptographically secured digital representation of value or contractual rights that—

(a)

can be transferred, stored or traded electronically, and

(b)

that uses technology supporting the recording or storage of data (which may include distributed ledger technology).

Defined in s.417(1) · see it in the full Act
the EU Benchmarks Regulation 2016

“the EU Benchmarks Regulation 2016” means Regulation EU 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 , as it forms part of assimilated law ;

Defined in s.417(1) · see it in the full Act

Cases considering section 22 (58)

WW Property Investments Ltd v National Westminster Bank Plc

[2016] EWCA Civ 1142 · 29 November 2016Defines

Section 22 supplied the statutory definition of a regulated activity as a specified business activity relating to a specified investment. The court used it to connect the Swap and Collars to the regulatory order. (see paras [62]-[65]) Section 22(4), providing that investment includes any asset, right or interest, supported the statutory classification of the relevant financial contracts. (see para [63]) Section 22(5), providing that specified matters are specified by Treasury order, supported the use of the Regulated Activities Order to identify the relevant activity and investment. (see para [63])

Napoli v R.

[2012] EWCA Crim 1129 · 25 May 2012Defines

Section 22(1), read with section 22(5) and the regulated activities order, supplied the statutory basis for treating acceptance of deposits by way of business as a regulated activity. (see paras [6]; [29]) Section 22(5), read with section 22(1) and the regulated activities order, supplied the statutory basis for treating acceptance of deposits by way of business as a regulated activity. (see paras [6]; [29])

Helden v Strathmore Ltd

[2011] EWCA Civ 542 · 11 May 2011Defines

The provision supplied the governing definition of regulated activity, requiring a specified activity carried on by way of business and the prescribed connection with an investment or property (see paras [30]; [35]-[42]). The court identified this limb as covering specified activity relating to an investment of a specified kind (see para [30]). The court identified this limb as covering an activity also specified for the paragraph and carried on in relation to property of any kind (see para [30]).

38 more judgments, and what each says about section 22, are in the case-law panel in the full Act.

Explanatory note

63.This section makes provision as to the classes of regulated activity, if carried on by way of business, and types of investment which are to be regulated under the Act.  These are to be prescribed by the Treasury by order to be made under subsection (1).  An activity will only be a regulated activity if it is carried on by way of business and is specified in the order under subsection (1).  The Treasury will have the power under section 419 to specify circumstances in which an activity shall or shall not be regarded as being carried on by way of business.

64.Schedule 2 indicates the general range of activities and investments that the Treasury may include within the order defining the scope of regulation, but it does not exhaustively list them.  It is therefore possible that other activities or investments may be brought within the scope of the regulation under the Act.  However, the general nature of the activities set out in Schedule 2 serves as a limitation on the extent of the Treasury’s power to bring further activities within the scope of the Act.

All the explanatory notes for the Act

Amendments and notes

34 notes from legislation.gov.uk

Amendments

  1. F140S. 22 heading substituted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 7(1)(d), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1
  2. F141S. 22(1A) inserted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 7(1)(a), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1
  3. F142Word in s. 22(1A)(a) omitted (27.2.2018) by virtue of The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 38(a)
  4. F143Word in s. 22(1A)(a) inserted (1.5.2020) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(b), 39(a)
  5. F144S. 22(1A)(b) omitted (1.5.2020) by virtue of The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(b), 39(b)
  6. F145S. 22(1A)(c) inserted (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 38(c)
  7. F146S. 22(1B) inserted (E.W.S.) (6.10.2018) by Financial Guidance and Claims Act 2018 (c. 10), ss. 27(4)(a), 37(5); S.I. 2018/1045, reg. 2(a)
  8. F147Words in s. 22(3) substituted (E.W.S.) (6.10.2018) by Financial Guidance and Claims Act 2018 (c. 10), ss. 27(4)(b), 37(5); S.I. 2018/1045, reg. 2(a)
  9. F148Words in s. 22(3) inserted (24.1.2013) by Financial Services Act 2012 (c. 21), ss. 7(1)(b), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(a), Sch. Pt. 1
  10. F149Words in s. 22(4) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 69(3), 86(3); S.I. 2023/779, reg. 4(uu)
  11. F150S. 22(6) omitted (1.5.2020) by virtue of The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(b), 39(c)
  12. F151S. 22(6A) inserted (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 38(e)

Modifications

  1. C89S. 22 applied (1.9.2002) by 1974 c. 39, s. 16(6E)(a) (as inserted (1.9.2002) by 2001/544, arts. 2(2)(b), 90(2))
  2. C90S. 22 applied (E.W.) (7.6.2013) by The Energy Supply Company Administration Rules 2013 (S.I. 2013/1046), rules 1, 10(7)(a) (with rules 3, 208)
  3. C91S. 22 applied by S.S.I. 2011/141, Sch. 4 para. 1(2) (as substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 43(a))
  4. C92S. 22 applied by 2009 c. 4, s. 502(1A) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 16(b))
  5. C93S. 22 applied by 2007 c. 3, s. 564B(1A) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 12(b))
  6. C94S. 22 applied by S.I. 2012/2079, reg. 2(1A) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 44(a)(ii))
  7. C95S. 22 applied by S.I. 2004/400, reg. 5(7) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 25(b))
  8. C96S. 22 applied by S.I. 2001/497, reg. 113(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 23(b))
  9. C97S. 22 applied by S.I. 2013/380, Sch. 6 para. 11(9) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 45(b))
  10. C98S. 22 applied by S.I. 2001/341, reg. 114(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 22(b))
  11. C99S. 22 applied by S.I. 2008/1741, reg. 112(5) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 37(b))
  12. C100S. 22 applied by S.I. 2008/570, Sch. para. 11(2) (as substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 35)
  13. C101S. 22 applied by 2003 c. 1, s. 554O(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 9(c))
  14. C102S. 22 applied by S.I. 2007/2157, reg. 23(6) (as inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 31(5)(b))
  15. C103S. 22 applied by S.I. 2008/700, Sch. para. 12(2) (as substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No. 2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), Sch. para. 36)
  16. C104S. 22 applied (16.8.2013) by The Democratic People s Republic of Korea (European Union Financial Sanctions) Regulations 2013 (S.I. 2013/1877), regs. 1(1), 2(2)(a) (with reg. 21)
  17. C105S. 22 applied (8.8.2018) by The Republic of Maldives (Asset-Freezing) Regulations 2018 (S.I. 2018/861), regs. 1(1), 2(2)(a) (with reg. 17)
  18. C106S. 22 applied (31.12.2020) by The Syria (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/792), regs. 1(3), 23(2), 55(8), 70(4); 2020 c. 1, Sch. 5 para. 1(1)
  19. C107S. 22 applied (31.12.2020) by The Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855), regs. 1(2), 58(8), 71(4); 2020 c. 1, Sch. 5 para. 1(1)
  20. C108S. 22 applied (E.W.) (1.6.2023) by The Hartlepool Development Corporation (Functions) Order 2023 (S.I. 2023/446), arts. 1(3), 16(8)
  21. C109S. 22 applied (E.W.) (1.6.2023) by The Middlesbrough Development Corporation (Functions) Order 2023 (S.I. 2023/447), arts. 1(3), 16(8)
  22. C110S. 22 applied (10.10.2024) by The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 (S.I. 2024/948), regs. 1(2), 15(1) (with regs. 14, 29)