FCA clamps down on Appointed Representatives in fresh consultation

Require stronger oversight by principals

Ayesha Venkataraman
clock • 4 min read

The Financial Conduct Authority (FCA) wants to change the Appointed Representatives (AR) regime to reduce potential harm to consumers and markets, while also retaining the cost, competition and innovation benefits it said the model can provide.

In a consultation published on Friday (3 December), the body outlined its broadly two-pronged plan, requiring more effective and strengthened oversight of ARs by the principals, while also requiring the principals to provide the FCA with more information on their ARs. It said the latter would help the regulator to better identify risks. "We also want to gather more information on principals and their business in relation to ARs, before appointments are made, so that we can, if needed, check whether the appropriate oversight arrangements have been put into place and take any necessary act...

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