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Exempt person
Practical Law UK Glossary 5-107-6586 (Approx. 4 pages)
Glossary
Exempt person
A person who is exempt from the general prohibition under the Financial Services and Markets Act 2000 (FSMA), in respect of the activities it carries on (section 417(1), FSMA). Exempt persons can therefore carry on regulated activities without authorisation from the Financial Conduct Authority (FCA). Exemption in relation to an activity is as result of either:
- An exemption order under section 38(1) of FSMA. Exemption order means the Financial Services and Markets Act 2000 (Exemption) Order 2001 (SI 2001/1201) under which, for example, the Bank of England is an exempt person.
- Being an appointed representative under section 39 of FSMA.
- 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.