Being a recognised investment exchange (RIE) and as set out in section 285(2) of FSMA. Broadly, the activities of the RIE must be carried on as part of its business as an investment exchange or to facilitate the provision of clearing services by another person. Under this, for example, the London Stock Exchange (LSE) is an exempt person.
Being a recognised clearing house (RCH) and as set out in section 285(3) of FSMA. Broadly, the activities of the RCH must be carried on for the provision of clearing services or to facilitate the provision of clearing services by another person.
When considering this term in the context of financial services, reference should be made to the FCA Handbook glossary definition of exempt person.