Do I need to obtain authorisation from a UK regulator?

Expanding into the UK series: Do I need to obtain authorisation from a UK regulator? 

If you wish to undertake financial services business within the UK, or (in some circumstances) into the U K from a location overseas, you may require authorisation. This article helps you to consider whether you need to obtain authorisation (i.e. a licence) from one of the U K regulators.

The four-part test for requiring a licence 

Any person who carries on a “regulated activity” in the UK will require authorisation from the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). For something to amount to a regulated activity, it normally has to satisfy all of the following four tests:

Exclusions

There are a number of exclusions from the UK regulatory regime. If you can bring yourself within an exclusion, you will not require UK authorisation. 

The overseas person exclusion is a general exclusion that is available to an “overseas person". This is a person who carries on regulated activities but does not do so, or offer to do so, from a permanent place of business that they maintain in the UK. This applies to a number of regulated activities including: dealing in investments (as principal or as agent), arranging deals in investments, and advising on investments. 

About this series of articles

The UK is a pre-eminent global financial centre and Europe’s most popular destination for financial services FDI. It offers access to global markets and unmatched connectivity, a highly skilled talent pool, a culture of innovation, and a stable and supportive regulatory regime.   

This series of articles highlights some of the regulatory requirements and practical steps you need to consider if you are looking to expand to the UK. For more detail, you can read our full guide: 'Expanding into the UK: a guide for international financial services firms'. The report is published by the City of London Corporation. The author of the report is Hogan Lovells.

The information in this article series and the ‘Expanding’ guide is provided as a general guide only and should not be relied on as a substitute for specific legal and/or other professional advice.