Category: Compliance & AML · Reviewed by Taylor Watts, Broker · New Business · Last reviewed June 2026
A person who is exempt from the FSMA general prohibition on carrying on regulated activity without authorisation — typically a Recognised Investment Exchange, a member of Lloyd’s, an Appointed Representative or a person within an exclusion under the Regulated Activities Order.
An Exempt Person is a person who, while carrying on what would otherwise be a regulated activity, is exempted by statute from the requirement to be authorised. Exempt Persons include Appointed Representatives, members of the professions undertaking incidental regulated work within Part XX FSMA, members of Lloyd’s, and a number of statutory category persons.
FSMA section 38 (exemption orders), section 39 (Appointed Representatives), section 285 (recognised investment exchanges), Part XX (professional firms with incidental regulated business), and the Financial Services and Markets Act 2000 (Exemption) Order 2001 (S.I. 2001/1201).
Exempt status is a defence to the general prohibition under FSMA section 19. The exemption is specific — it operates only for the relevant activity within the relevant scope. For example, an Appointed Representative is exempt only within the scope of the agreement with its Principal and only for activities covered by the Principal’s own permission.
Members of certain professions (solicitors, accountants, actuaries) can rely on Part XX FSMA where regulated activity is incidental to their professional services and conducted under the rules of a Designated Professional Body. The Bank of England’s status sits outside the authorisation framework altogether.
A typical insurance Appointed Representative is an Exempt Person by virtue of FSMA section 39, and operates under the principal’s permission, brand and supervision — relying on the principal’s authorisation rather than its own. Apex itself is an Authorised Person, not an Exempt Person.
Financial Services and Markets Act 2000, sections 19, 38, 39, 285, Part XX. Financial Services and Markets Act 2000 (Exemption) Order 2001 (S.I. 2001/1201).
By Matt Bartlett, Director, on 2026-06-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
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