What role do designated professional bodies play in financial activities?

Designated professional bodies play an important role in overseeing certain financial activities, particularly those related to their members. They are allowed to carry on specific financial services or activities that are considered incidental to their main purpose or service. This means that while their primary focus may not be financial services, they can engage in related activities as part of their overall offering, as long as these activities are secondary to their main professional objectives.

For example, a designated professional body such as a chartered accountant association might permit their members to provide certain types of financial advice alongside their main accounting services, as long as it adheres to specific guidelines. This facilitation of incidental activities is designed to allow professionals to provide a more comprehensive service to their clients without requiring full FCA authorization for every financial activity they undertake, which would generally be more stringent and may not be practical for their primary professional focus.

While it might seem restrictive to have regulations in place, this structure actually ensures that professionals can offer a wider range of services while maintaining standards and oversight compatible with their main professional duties.