What does the general prohibition under S19 of FSMA 2000 state?

The general prohibition under Section 19 of the Financial Services and Markets Act (FSMA) 2000 states that a person may not engage in regulated activities unless they are authorized or are exempt from that requirement. This provision is a fundamental principle of the UK financial regulatory framework, designed to ensure that only suitably qualified and regulated entities can provide financial services to consumers.

This requirement serves several purposes. Firstly, it helps protect consumers by ensuring that those offering financial services have met certain standards of competency and conduct. Secondly, it aids in maintaining the integrity and stability of the financial system by regulating the entities that have the potential to impact it.

The other options provided don't align with the core essence of the general prohibition. The second choice, which suggests that only the Financial Conduct Authority (FCA) can conduct regulated activities, is misleading as it implies exclusivity where individuals or firms can also be authorized to conduct these activities. The third option incorrectly broadens the scope of regulation to include all financial services needing registration with Her Majesty's Treasury (HMT), while the prohibition specifically addresses who may engage in regulated activities without authorization. The final choice signifies an exemption for e-commerce activities that isn't consistent with the intention of FSMA, which broadly seeks to regulate applicable financial activities