In most cases, any person who carries on a regulated activity in the United Kingdom by way of business must either be an authorised person or an exempt person. Otherwise, the person commits a criminal offence and certain agreements may be unenforceable. AUTH 2.2 (Introduction) contains further guidance on these consequences. In order to be authorised, a person must either:
A person who is concerned to know whether his proposed activities may require authorisation will need to consider the following questions (these questions are a summary of the issues to be considered and have been reproduced, in slightly fuller form, in the flowchart in AUTH App 4.18):
will I be carrying on my activities by way of business (see AUTH App 4.3.3 G (The business test))?
if it is not the case that all of my activities are excluded, am I a professional firm whose activities are exempted under Part XX of the Act (see AUTH App 4.14 (Mortgage activities carried on by professional firms))?
An unauthorised person who intends to carry on activities connected with mortgages will also need to comply with section 21 of the Act (Restrictions on financial promotion). This appendix does not cover financial promotions that relate to mortgages. Persons should refer to the general guidance on financial promotion in Appendix 1 to the Authorisation manual (AUTH App 1 (Financial promotion and related activities)) and, in particular, to AUTH App 1.17 (Financial promotions concerning agreements for qualifying credit).