Ian69 I fear you've opened a very big can or worms so let's try to keep this civil, on focus and free of the "Prove it to me" rhetoric so many people want to toss in on this type of issue. You question has little to nothing to do with the validity of things psychic or paranormal but is akin to some of the fortuneteller laws we have here in the states. The purpose of which is bi-fold; to protect citizens from possibly charlatan activity that is predatory such as that which was so prevailent during the hieght of the Spiritualists movement in the 19th and early 20th centuries. The second purpose of this law is to help sustain church based power and "authority" as being the only legit source for such inspiration... I know many don't want to believe that latter part but much of European and U.S. law was composed with strong religious influence in mind.
Now, when it comes to doing Readings you must understand that most people that do this work
a.) Aren't predatory in their intent;
b.) Don't use all the psychology, slight of hand and general cheats you've read about; and
c.) Don't claim to be soothsayers, prophets or fortune tellers. They are in fact using a "legit" divination system as an oracle and the purpose behind this is to allow the sitter/client to take a look at their circumstances and get an alternate point of view or two. The majority of what happens in most sessions is that the Reader listens as the sitter answers their own questions and concerns... same as a shrink for about half the price and no drugs.
Even in the "Shut-eye" world there is an understanding that Divination is not the same thing as Prophecy, this is a fact that has been spoken on by most of the major Psychic personalities of the past century like Jean Dixon and Edgar Cayce. But, people confuse and mix these concepts which result in a good deal of misrepresentation that is both, incidental as well as intentional; the latter for the sake of manipulation be it to create fear over something or doubt.
Divination is not the same thing as Prophecy in that it allows the sitter/client it's freedom of will and choice which can result in major shifts in a given paradigm or "facts" as they were presented at the time of a session. This is known of by certain skeptic groups and exploited in that they recognize how people don't know the difference between prophecy and Divination e.g. they twist the issue so as to support their ideas. This is one of my bigger pet peeves when it comes to such intellectuals and trust me, the skeptics aren't the only people the manipulate such information... religonists have done it for more than a few centuries.
Prophecy on the other hand, has a whole new set of parameters woven in and around it and the biggest irony I find with it is the fact that it seems to be only 100% accurate in hindsight though there are those that are doing their damndest in our world to force certain "revelations" to come into fruition so as to "prove" the validity of their points of view. All I can say is JC is probably going to be rather pi**ed when he comes back and sees all the money changers in the temple again...
Very few municipalities enforce their Fortuneteller laws. Some communities, like Las Vegas and Los Angeles have taken the step of requiring an FBI background check and registration of persons working in the capacity of Psychic/Counselor due to the gross amount of predator activity found in those communities. This is a very expensive and time consuming process and believe me, it has reduced the amount of fraud waged against teh public under this guise to a significant degree; proving itself as the smarter action when it comes to weeding out the real crooks.