Which statement about the general prohibition in section 19 of the Financial Services and Markets Act 2000 is correct?
Answer and explanation
Correct answer: C. No person may carry on a regulated activity by way of business in the UK unless authorised or exempt
- Step 1: Section 19 is the foundation of the financial services regime.
- Step 2: Breach is a criminal offence under section 23, and agreements made in breach may be unenforceable against the other party.
Answer
No person may carry on a regulated activity by way of business in the UK unless authorised or exempt.
Why not the others: Ordinary share purchases are not regulated activities; legal advice is governed by different legislation; lending to a friend not by way of business is not caught.
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