Investor Presentaiton
UK Law: Territorial Scope of the General
Prohibition
Only regulated activities carried on in the UK fall within the territorial scope of FSMA
Outward
Section 418 of FSMA extends its territorial scope outward only, whereby persons based in
the UK who carry on regulated activities overseas need to be regulated in the UK, by
deeming activities that would otherwise be carried on outside the UK to be carried on in
the UK. Three cases are relevant:
• Day-to-day management in the UK: all persons who have their head or registered office
in the UK but who only carry on regulated activities in non-European Economic Area
(EEA) countries will need to be authorized if they direct the day-to-day management of
the activities from UK establishments
Morgan Lewis
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