Such is the complexity of the law in the UK applicable to US firms seeking to provide investment services to UK people, that writing a short but helpful summary of that maze of regulation is a considerable challenge.
The Financial Services and Markets Act 2000 (FSMA) governs most – but not all – investment businesses in the UK. For the most part, FSMA investment business does not include the simple provision of finance, which is unregulated (except for domestic mortgage lending). Some lending which is in the form of the provision of credit to individual consumers in amounts of £25k or less is regulated by the Consumer Credit Act 1974 (CCA) for which US firms, but not authorised European Union credit institutions, require a CCA licence. Foreign exchange and commodities (including precious metals such as gold and silver) are not regulated investments unless they are the subject of a derivatives contract.
