New regulatory powers Designated activities regime Designation of activities
The DAR will enable HM Treasury to designate activities related to financial markets exchanges, instruments, products, or investments, in order to bring them into regulation. Where an activity has been designated, anyone conducting that activity will be required to follow the rules for that activity, unless they are exempt.
	Initially, the government expects most designated activities to be activities which are currently regulated through retained EU law. This is an ongoing power similar to the power to bring activities in the RAO, and so the Act enables HM Treasury to designate any activity that relates, or is connected to, financial markets or exchanges of the United Kingdom, or to financial instruments, financial products, or financial investments issued or, or sold, to persons in the United Kingdom (which can include cryptoassets).
	When designating an activity, HM Treasury will be able to make regulations relating to the performance of that activity, including prohibiting the activity in its entirety, or setting direct requirements.
	As part of these regulations, HM Treasury will have the ability to stipulate where the FCA may make rules relating to the performance of a designated activity. Where the FCA is empowered to make rules, the FCA can make rules relating to the designated activity, or to specified matters relating to the designated activity, and not the wider unrelated activities of those carrying out the designated activity. When making rules relating to a designated activity the FCA will be required to do so within a wider overall policy framework set by government and Parliament.
	This differs from the rule-making powers over authorised persons in section 9A of FSMA 2000, which enables the FCA and the PRA to make any rules over authorised persons, including in relation to activity which is not a regulated activity, provided that they consider this necessary or expedient to advance their objectives.
	When making designated activity regulations, HM Treasury will also have the power to set the appropriate monitoring and enforcement framework to allow for the effective regulation of each activity. This will include the ability to confer monitoring and enforcement powers on the FCA for each designated activity, including the power to require the supply of information. HM Treasury may make such provision for enforcement by applying the existing provisions of FSMA 2000 (with or without modifications), including any existing criminal offences within FSMA 2000. This includes the ability to widen the scope of such offences.