Yes, in almost all cases, giving investment advice as a business in the UK requires authorisation from the Financial Conduct Authority (FCA). Advising on investments is a regulated activity, and doing it without authorisation is a criminal offence. Here is what that means for anyone thinking of advising clients on investments in England and Wales.
Advising on investments is a regulated activity
Under the Financial Services and Markets Act 2000 (FSMA), you must be authorised or exempt to carry on a "regulated activity" by way of business. Advising on investments (such as shares, bonds, funds, pensions and certain insurance-based investments) is one of those regulated activities.
FSMA section 19 states the general prohibition on carrying on a regulated activity without authorisation or exemption. Contravening that prohibition is a criminal offence under FSMA. Beyond the criminal risk, agreements made through unauthorised regulated activity may be unenforceable, and you could face FCA enforcement and civil liability.
Becoming authorised
To advise on investments, a firm normally applies to the FCA for authorisation. The FCA will assess whether the firm meets its threshold conditions (such as having adequate resources, suitable management and appropriate systems). Under the Senior Managers and Certification Regime (SMCR), Senior Managers generally require individual FCA approval; other relevant individuals may instead fall within the firm's certification regime and conduct rules, rather than being individually approved by the FCA. Advisers giving retail investment advice are expected to hold appropriate qualifications.
Exemptions and appointed representatives
There are some routes that do not require your own full authorisation:
- Appointed representative. You can operate under the umbrella of an authorised firm (the "principal"), which takes regulatory responsibility for you.
- Exclusions and exemptions. Certain limited activities or persons are excluded, but these are narrow and technical, and you should not assume one applies without advice.
- Generic information vs advice. Giving factual, generic information (not a personal recommendation) may fall outside "advice", but the line is easy to cross. Regulated advice under FSMA and the Regulated Activities Order is generally advice given to a person in their capacity as an investor on the merits of buying, selling, subscribing for or underwriting a particular specified investment. Some such advice may also constitute a "personal recommendation", but whether advice is regulated is not determined solely by that label.
Mortgages, pensions and insurance
Advising on mortgages and certain insurance products can be separately regulated activities with their own requirements. Pension-related advice may also be regulated, but the position depends on the specific activity or product (for example, investment advice on specified investments, pension transfer or opt-out advice, or insurance-based investment advice), rather than pensions being a single standalone regulated category. If your advice spans any of these areas, your authorisation must cover each relevant regulated activity.
Practical guidance
- Assume that personal investment recommendations require FCA authorisation.
- Consider whether becoming an appointed representative is a quicker route than full authorisation.
- Be careful with the information vs advice line, err on the side of caution.
- Get specialist regulatory advice before offering any investment advice.
Key takeaways
- Advising on investments is a regulated activity, you generally need FCA authorisation.
- Operating without authorisation breaches the general prohibition (FSMA, s 19) and is a criminal offence.
- Under SMCR, Senior Managers require FCA approval; other staff may fall within the certification regime and conduct rules. Qualification requirements also apply to retail investment advisers.
- Alternatives include becoming an appointed representative; exemptions are narrow, take advice.
Sources
- Financial Services and Markets Act 2000 (general prohibition; regulated activities including advising on investments)
- FCA threshold conditions and the Senior Managers and Certification Regime
- The Regulated Activities Order (definition of advising on investments)
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified financial-services solicitor or compliance specialist.