Always wondered this while i was studying Consumer Law at uni.
Even now under the most recent Regulations, psyhics etc are not illegal. There did used to be a Mediums Act but Ive not needed to read it.
Heard a guy at Manchester uni wrote a dissertation on it.
Seems to be to be saying that Mediums are accepted as 'real' but could be fraudulent if they use some other device to aid them, and they cannot claim to use powers if they intend to decieve someone. That Act is repealed now though and its more the practice of them that is covered under here http://www.opsi.gov.uk/si/si2008/draft/ukdsi_9780110811574_en_1. I could probably go on and on explaining it but not sure anyone gives that much a fuck
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