Dan Moore, Richard Ellis & Jack Sears provide a guide for insolvency practitioners
- This article guides insolvency practitioners (IPs) through the UK financial services regulatory framework.
- It focuses on IPs’ interaction with the Financial Services and Markets Act 2000, the general prohibition, and various related statutory instruments.
- It also addresses the potential risks to IPs of non-compliance, and the scope and boundaries of the exclusions available to them.
At the heart of the UK’s financial services regulatory environment is the Financial Services and Markets Act 2000 (FSMA 2000) and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO 2001). These two pieces of legislation govern the carrying on of various activities (known as ‘regulated activities’) by companies and individuals in the UK.
Another component of this regulatory framework is the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO 2005), which sets out some of the principal rules around making financial promotions.
In summary, s 21, FSMA 2000 and FPO 2005 restrict unauthorised people from making financial promotions unless the
