PART 5A

Designated activities
CHAPTER 1

GENERAL PROVISIONS

Designated activities
71K
1
The Treasury may by regulations provide for an activity of a specified description to be a designated activity for the purposes of this Act.
2
Regulations under this section are referred to in this Act as designated activity regulations.
3
Designated activity regulations may provide for an activity to be a designated activity only if the activity relates or is connected to—
a
the financial markets or exchanges of the United Kingdom, or
b
financial instruments, financial products or financial investments that are (or are proposed to be) issued or sold to, or by, persons in the United Kingdom.
4
The description of an activity as a designated activity may be framed by reference to—
a
the way in which the activity is carried on, or
b
the description of persons who carry on the activity.
5
Schedule 6B contains examples of activities that may be specified as designated activities.
6
Nothing in Schedule 6B limits the powers conferred by subsection (1).
7
The financial instruments, financial products and financial investments mentioned in subsection (3)(b) may include cryptoassets.

Restrictions on carrying on of designated activities
71L
1
A person must not carry on a designated activity if, or to the extent that, designated activity regulations prohibit the carrying on of that activity.
2
A person carrying on a designated activity that is not prohibited by virtue of subsection (1) must comply with—
a
designated activity rules relating to that activity, and
b
any other requirements imposed in relation to that activity by designated activity regulations.
3
For the purposes of this Act designated activity rules are rules made under section 71N.

Designated activity regulations: general
71M
1
Designated activity regulations may make provision generally in relation to the carrying on of designated activities.
2
The following are examples of provision that may be made by designated activity regulations—
a
provision about cases in which the restrictions imposed by section 71L are to apply to persons carrying on a designated activity outside the United Kingdom;
b
provision supplementing, or in connection with, any requirements relating to a designated activity under designated activity rules.
3
Designated activity regulations may—
a
provide for exemptions (including exemptions that are subject to specified conditions);
b
confer powers on the Treasury or the FCA.

Designated activities: rules
71N
1
The FCA may make rules relating to designated activities.
2
The power under subsection (1) is only exercisable in so far as designated activity regulations provide for the FCA to make rules—
a
relating to the designated activity, or
b
relating to specified matters relating to designated activities.
3
The FCA may by notice suspend any rules made under subsection (1) for such period as it considers appropriate.
4
Rules under subsection (1) may include provision enabling requirements imposed by the rules to be dispensed with, or modified, in such cases or circumstances as may be determined by the FCA under the rules (subject to subsection (5)).
5
The powers under subsections (3) and (4) are only exercisable in such circumstances as may be specified in designated activity regulations.
6
Before suspending any rules in accordance with subsection (3), the FCA must consult the PRA.
7
A notice under subsection (3) must be published by the FCA in the way appearing to the FCA to be best calculated to bring it to the attention of persons likely to be affected by it.
8
The reference in section 137T(a) (supplementary powers) to “
authorised persons
” includes, in relation to rules made under this section, a reference to any persons to whom the rules under this section apply.

Designated activities: directions
71O
1
The FCA may by directions impose such requirements on a person, or such description of persons, relating to the carrying on of designated activities as the FCA considers appropriate.
2
The power under subsection (1) is only exercisable in so far as designated activity regulations provide for the FCA to make directions relating to the designated activity.
3
A requirement may, in particular, be imposed so as to require the person concerned—
a
to take specified action, or
b
to refrain from taking specified action.
4
A requirement may extend to activities which are not designated activities.
5
A direction under this section—
a
may specify the way in which, and the time by which, a thing is to be done;
b
may be varied;
c
may be expressed to have effect during a specified period or until revoked.
6
The FCA may at any time revoke a direction under this section by notice.
7
The revocation of a direction does not affect the validity of anything previously done in accordance with it.
8
A direction or notice under this section must be given in writing to the person or persons to whom it applies.
9
But if in the circumstances the FCA considers it appropriate, the FCA may, in addition to, or instead of, proceeding under subsection (8), publish the direction or notice in the way appearing to the FCA to be best calculated to bring it to the attention of persons likely to be affected by it.
10
Designated activity regulations may make provision for the exercise of the power under subsection (1) to be subject to such conditions as may be specified in the regulations.
11
Provision under subsection (10) may (among other things) require, where the exercise of the power relates to a PRA-authorised person, consultation with the PRA.
12
The imposition of a requirement that expires at the end of a specified period does not affect the FCA’s power to impose a new requirement.

Designated activities: liability
71P
1
Designated activity regulations may make provision about liability and compensation in connection with this Part.
2
A contravention of a requirement under designated activity regulations or designated activity rules—
a
does not, except as provided by designated activity regulations under section 71Q or by regulations under section 71R, make a person guilty of an offence;
b
does not, except as provided by designated activity regulations—
i
make any transaction void or unenforceable, or
ii
give rise to any action for breach of statutory duty.
3
Designated activity regulations may in particular—
a
in cases where the regulations make provision for liability, make provision excluding civil liability (whether generally or to such extent as may be specified),
b
make provision for liability to be determined in accordance with designated activity rules,
c
make provision so that a person being subject to a liability includes another person being entitled as against that person to rescind or repudiate an agreement, and
d
make provision for the purposes of subsection (1) by applying provisions of this Act with or without modifications.

Designated activities: enforcement
71Q
1
Designated activity regulations may make provision about enforcement in connection with this Part.
2
Provision about enforcement includes (among other things) provision—
a
requiring the supply of information;
b
about investigations (including the making of reports);
c
conferring powers of entry;
d
conferring powers of inspection, search and seizure;
e
conferring powers of censure;
f
imposing monetary penalties;
g
about appeals;
h
conferring functions (including functions involving the exercise of a discretion) on a person.
3
Designated activity regulations may in particular make provision for the purposes of subsection (1) by applying provisions of this Act with or without modifications, including any criminal offences created by this Act (and modifications made by virtue of this subsection may widen the scope of any such offences).
4
The power under this section includes power to amend or repeal provisions of this Act.

Designated activities and rules: connected amendments
71R
1
The Treasury may by regulations make such modifications to provision made by or under this Act or any other enactment as the Treasury consider appropriate for purposes of, or connected with, any designated activity regulations or designated activity rules.
2
The power under subsection (1) may in particular be exercised for the purpose of removing or varying any requirement imposed by or under this Act so far as applying to the carrying on of any designated activity.
3
The power under subsection (1) includes power to modify any criminal offence created by this Act (including by widening the scope of any such offence).
4
In this section—
- “
enactment
” includes—
  1. an enactment comprised in subordinate legislation (within the meaning given by section 21 of the Interpretation Act 1978),
  2. an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,
  3. an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament, and
  4. an enactment comprised in, or in an instrument made under, Northern Ireland legislation;
- “
modify
” includes amend, repeal or revoke.

Designated activities regulations: Parliamentary control
71S
1
This section applies to regulations which contain provision made under section 71K which provides for an activity of a specified description to be a designated activity.
2
A statutory instrument containing regulations to which this section applies, other than regulations to which subsection (3) applies, may not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.
3
This subsection applies to regulations which contain a statement made by the Treasury that they are of the opinion that, by reason of urgency, it is necessary to make the regulations without a draft of the statutory instrument containing the regulations being laid and approved under subsection (2).
4
Where subsection (3) applies to regulations, a statutory instrument containing the regulations must be laid before Parliament after being made.
5
Regulations contained in a statutory instrument laid before Parliament under subsection (4) cease to have effect at the end of the period of 28 days beginning with the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of each House of Parliament.
6
In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—
a
Parliament is dissolved or prorogued, or
b
either House of Parliament is adjourned for more than four days.
7
If regulations cease to have effect as a result of subsection (5), that does not—
a
affect the validity of anything previously done under the regulations, or
b
prevent the making of new regulations.
CHAPTER 2

PROVISIONS RELATING TO PARTICULAR DESIGNATED ACTIVITIES

“Relevant designated activity” and “relevant Part 5A requirement”

Meaning of “relevant designated activity” and “relevant Part 5A requirement”
71T
1
In this Act “
relevant designated activity
” means an activity that is a designated activity as a result of a provision specified in Part 1 of Schedule 6C.
2
In this Act “
relevant Part 5A requirement
” means, in relation to a provision of this Act listed in the first column of the Table in Part 2 of Schedule 6C, a requirement that—
a
is imposed by virtue of any of the designated activity regulations specified in the corresponding entry in the second column, and
b
is of any of the descriptions specified in the corresponding entry in the third column.

Procedure relating to relevant Part 5A directions

Meaning of “relevant Part 5A direction” for purposes of this Chapter
71U
For the purposes of this Chapter a “relevant Part 5A direction” is a direction given under section 71O by virtue of designated activity regulations that are specified in the first column of the Table in Part 3 of Schedule 6C, other than a direction (if any) of a description specified in the corresponding entry in the second column.

Procedure for giving, varying or revoking relevant Part 5A direction
71V
1
If the FCA proposes to give a relevant Part 5A direction, or gives such a direction with immediate effect, the FCA must give written notice to the person concerned (“
P
”).
2
A relevant Part 5A direction takes effect—
a
immediately, if the notice under subsection (1) states that that is the case,
b
on such other date as may be specified in the notice, or
c
if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.
3
A relevant Part 5A direction may be expressed to take effect immediately, or on a specified date, only if the FCA, having regard to the ground on which it is exercising the power to give the direction, considers that it is necessary for the direction to take effect immediately, or on that date.
4
The notice under subsection (1) must—
a
give details of the direction,
b
state the FCA’s reasons for the direction and for its determination as to when the direction takes effect,
c
inform P that P may make representations to the FCA within such period as may be specified in the notice (whether or not P has referred the matter to the Tribunal), and
d
inform P of P’s right to refer the matter to the Tribunal.
5
The FCA may extend the period allowed under the notice for making representations.
6
If, having considered any representations made by P, the FCA decides—
a
to give the direction proposed, or
b
if the direction has been given, not to revoke the direction,
it must give P written notice.
7
If, having considered any representations made by P, the FCA decides—
a
not to give the direction proposed,
b
to give a different direction, or
c
to revoke a direction which has effect,
it must give P written notice.
8
A notice under subsection (6) must inform P of P’s right to refer the matter to the Tribunal.
9
A notice under subsection (7)(b) must comply with subsection (4).
10
If a notice informs P of P’s right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
11
This section applies to the variation of a direction—
a
on the FCA’s own initiative, or
b
in response to, but otherwise than in accordance with, an application under section 71W,
as it applies to the giving of a direction.
12
If the FCA decides on its own initiative to revoke a direction, it must give written notice to the person concerned.
13
For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 391(8).

Application for variation or revocation of relevant Part 5A direction
71W
1
A person to whom a relevant Part 5A direction has been given may apply to the FCA for the variation or revocation of the direction.
2
An application for the variation of a direction must contain a statement of the desired variation.
3
An application under this section must—
a
be made in such manner as the FCA may direct, and
b
contain, or be accompanied by, such information as the FCA may reasonably require.
4
At any time after the application is received and before it is determined, the FCA may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.
5
Different directions under subsection (3)(a) may be given, and different requirements under subsection (3)(b) or (4) imposed, in relation to different applications or categories of application.
6
The FCA may require an applicant to provide information which the applicant is required to provide to it under this section in such form, or to verify it in such a way, as the FCA may direct.
7
The applicant may withdraw the application, by giving the FCA written notice, at any time before the FCA determines it.

Determination of application under section 71W
71X
1
This section applies in relation to an application under section 71W for the variation or revocation of a direction, and in this section the applicant is referred to as “
A
”.
2
If the FCA grants the application, it must give A written notice stating the date from which the variation or revocation has effect.
3
If the FCA proposes to refuse to revoke or vary the direction, it must give A written notice.
4
A notice under subsection (3) must—
a
state the FCA’s reasons for the refusal,
b
inform A that A may make representations to the FCA within such period as may be specified in the notice (whether or not A has referred the matter to the Tribunal), and
c
inform A of A’s right to refer the matter to the Tribunal.
5
The FCA may extend the period allowed for making representations.
6
If, having considered any representations made by A, the FCA decides to refuse to vary or revoke the direction, it must give A written notice.
7
A notice under subsection (6) must inform A of A’s right to refer the matter to the Tribunal.
8
If a notice informs A of A’s right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.

Relevant Part 5A direction: right to refer to Tribunal
71Y
A person who is aggrieved by the exercise by the FCA of its powers in relation to a relevant Part 5A direction given to that person may refer the matter to the Tribunal.
Pt. 5A inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 8(2), 86(3); S.I. 2023/779, reg. 4(e)
S. 71V applied (with modifications) (14.1.2025 for specified purposes) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 24, 25, Sch. 1 Pt. 1
Pt. 5A Ch. 2 inserted (14.1.2025) by The Financial Services and Markets Act 2000 (Designated Activities) (Supervision and Enforcement) Regulations 2025 (S.I. 2025/22), reg. 1(2), Sch. para. 3
S. 71W applied (with modifications) (14.1.2025 for specified purposes) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 24, 25, Sch. 1 Pt. 1
S. 71Y applied (with modifications) (14.1.2025 for specified purposes) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 24, 25, Sch. 1 Pt. 1
S. 71X applied (with modifications) (14.1.2025 for specified purposes) by The Short Selling Regulations 2025 (S.I. 2025/29), regs. 2(2)(3), 24, 25, Sch. 1 Pt. 1
Pt. 5A Ch. 1 heading inserted (14.1.2025) by The Financial Services and Markets Act 2000 (Designated Activities) (Supervision and Enforcement) Regulations 2025 (S.I. 2025/22), reg. 1(2), Sch. para. 2