Exclusions and exemptions relating to the general prohibition—an introduction
Exclusions and exemptions relating to the general prohibition—an introduction

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Exclusions and exemptions relating to the general prohibition—an introduction
  • Exemptions under FSMA 2000
  • 1) Appointed representatives
  • 2) Recognised investment exchanges and clearing houses
  • 3) Members of Lloyd's
  • 4) Members of the professions
  • Exemptions under the Exemption Order
  • Exclusions under the RAO
  • Exclusions applying to all the specified activities
  • Exclusions applicable to several specified kinds of activity

This Practice Note provides an introduction to the exemptions and exclusions that apply in relation to the general prohibition contained in section 19 of the Financial Services and Markets Act 2000 (FSMA 2000, s19) These exemptions and exclusions are set out in:

  1. FSMA 2000 itself

  2. the Financial Services and Markets Act 2000 (Exemption) Order 2001, SI 2001/1201 (Exemption Order), and

  3. the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO)

FSMA 2000, the Exemption Order and the RAO have been subject to a number of amendments since their implementation. This Practice Note concerns that latest iterations of these pieces of legislation.

In this Practice Note, references to exemptions relate to persons who are exempt from the need to apply for authorisation from the Prudential Regulation Authority (PRA) or Financial Conduct Authority (FCA) to carry out regulated activities. Exempt persons may therefore carry out regulated activities without falling foul of breaching the general prohibition. References to exclusions relate to activities which, if applicable, would mean that the person carrying out the activity in question would not be carrying out a regulated activity in breach of the general prohibition. For more information about the general prohibition, see Practice Note: Carrying on unauthorised business and breaching the general prohibition.

Exemptions under FSMA 2000

FSMA 2000 contains four categories of exempt person:

  1. appointed representatives

  2. recognised investment exchanges and clearing houses

  3. members

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