Which group is NOT classified as exempt under FSMA?

Investment fund managers are typically not classified as exempt under the Financial Services and Markets Act (FSMA). This is primarily because investment fund managers engage in activities that directly impact investors and the broader financial marketplace. As such, they are subject to a range of regulatory requirements designed to ensure consumer protection, market integrity, and risk management.

In contrast, other groups such as appointed representatives, supranational local authorities, and Lloyd's syndicate members may operate under different regulatory frameworks or have specific exemptions due to the nature of their operations or the way they interact with the market. For instance, appointed representatives often act on behalf of a regulated principal, thus allowing them some exemptions. Supranational local authorities may also have certain privileges and are not regulated in the same manner as investment firms. Lloyd's syndicate members function in a specialized insurance market, often granting them unique considerations under regulatory standards.

In summary, investment fund managers are subject to stringent regulations to protect investors and ensure the integrity of the financial system, which establishes them as a group that does not qualify for exemptions like others might under FSMA.