HM Treasury has made the Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2026 (S.I. 2026/157). The instrument adds a set of British Business Bank entities and National Housing Bank Limited to Part 1A of the 2001 Exemption Order as “exempt persons”. It was made on 24 February 2026, laid on 25 February, and comes into force on 27 March 2026.
In practical terms, being “exempt from the general prohibition” means these bodies may carry on regulated activities in the UK without obtaining Part 4A authorisation, provided they fall within the scope of the Order. Section 19 FSMA prohibits carrying on regulated activity unless a person is authorised or exempt; HM Treasury defines the regulatory perimeter via secondary legislation such as the Regulated Activities Order. (legislation.gov.uk)
The Order lists British Business Bank plc (08616013) and multiple subsidiaries, including British Business Investments Limited (09091930), British Business Finance Ltd (09091928), British Business Financial Services Ltd (09174621), British Patient Capital Limited (11271076), Nations and Regions Investments Limited (14777628) and British Business Aspire HoldCo Ltd (09263859). It also names BBB Investment Holdings Limited (11270966), BBB Mandates Limited (16284145) and BGP General Partner I LLP (SO308152), and adds National Housing Bank Limited (16862072). These corporate identities are recorded on official registers and group disclosures. (british-business-bank.co.uk)
The British Business Bank group describes itself as a government‑owned development institution rather than a deposit‑taking bank. The group states that, with the exception of BBB Investment Services Limited (which remains FCA‑authorised), its entities are not authorised by the PRA or FCA; the exemption therefore provides a statutory route to undertake regulated activities where required by mandate. (british-business-bank.co.uk)
The exemption does not affect the separate restriction on financial promotions in section 21 FSMA. Unless a relevant exemption in the Financial Promotion Order applies, communications inviting or inducing investment must still be made or approved by an authorised firm. Firms should therefore maintain existing section 21 approval and record‑keeping processes for materials issued by the newly exempt entities. (fca.org.uk)
National Housing Bank Limited has been established to support the government’s housing finance objectives. The Office for Budget Responsibility has signalled multi‑year financial transaction capacity for an NHB within Homes England, and Homes England has registered ‘National Housing Bank’ and ‘NHB’ trade marks-indicating the brand architecture now reflected in the instrument. (obr.uk)
The approach builds on the 2025 amendment that created Part 1A of the Exemption Order by first listing National Wealth Fund Limited as exempt in respect of any regulated activity. The 2026 amendment extends that model to additional public financial institutions. (slaughterandmay.com)
For counterparties, due‑diligence and documentation should recognise “exempt person” status alongside “authorised person”. Onboarding checks may not find these entities on the FCA Register; instead, compliance files should evidence the statutory exemption and continue to apply financial promotion controls where relevant. Credit and operational risk frameworks remain a matter for institutional policy rather than authorisation labels.
The Order is signed on behalf of the Treasury by Gen Kitchen and Christian Wakeford as two of the Lords Commissioners. Their appointments to the Commission were confirmed in October 2025, and Mr Wakeford currently serves as a Junior Lord of the Treasury. (thegazette.co.uk)