Exempt professional firms

The Financial Services Authority is obliged under the Financial Services and Markets Act to oversee the operations of professional firms that engage in investment business but not as their main activity and to this end it has issued CP69 “The Exempt Professional Firms Sourcebook”. Under the existing regime the direct regulation of these firms is left to the Recognised Professional Bodies (RPBs) which include the law societies, accountancy and actuary institutes. The new nomenclature is “Designated Professional Body” (DPB). The DPBs have not yet been specified by the Treasury but the FSA expects that the majority, if not all, of the current RPBs will apply for the new status.