Implanted transducers for functional electrical stimulation (FES) powered by inductive links are subject to conflicting requirements arising from low link efficiency, a low power budget and the need for protection of the weak signals against strong RF electromagnetic fields. We propose a solution to these problems by partitioning the RF transceiver and sensor/actuator functions onto separate integrated circuits. By amplifying measured neural signals directly at the measurements site and converting them into the digital domain before passing them to the transceiver the signal integrity is less likely to be affected by the inductive link. Neural stimulators are affected to a lesser degree, but still benefit from the partitioning. As a test case, we have designed a transceiver and a sensor chip which implement this partitioning policy. The transceiver is designed to operate in the 6.78 MHz ISM band and consumes approximately 360 μW. Both chips were implemented in a standard 0.5 μm CMOS technology, and use a 3 V supply voltage.