In the April 2026 column, Ann-Marie O’Neil examines the practical challenges that arise when applying the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) in the context of consumer finance. It highlights some of the most common analytical pitfalls and areas of misinterpretation that arise in practice, illustrating how the structure of the regime can give rise to error if not approached with sufficient care.
Introduction
The RAO performs a deceptively simple function within the UK regulatory perimeter: it specifies the activities and investments that are capable of constituting regulated activities under the Financial Services and Markets Act 2000 (FSMA).However, the RAO is frequently misunderstood and misapplied in practice, often with significant consequences. Errors in analysis can lead to costly retrospective remediation, needless litigation and, in some cases, flawed litigation strategies where mischaracterisations persist.
It is tempting to treat the RAO as a self-contained list of regulated activities, but that approach is incomplete. In practice, proper application requires movement between the specified activities, consideration of exclusions and exemptions and careful analysis of the RAO, connected legislation and the FCA Handbook.
To read the full article, please click on the download button below.
