FCA tightens AR rules to cut mis-selling risk

'Regulatory lacuna'

Jenna Brown
clock • 3 min read

The regulator has introduced tighter rules which make authorised firms more responsible for the actions of their appointed representatives (ARs).

It said the rules would improve oversight of ARs in a bid to stamp out mis-selling and improve consumer outcomes. The new rules mean authorised firms - known as principals - will be more responsible for the actions of their ARs. The FCA explained ARs are not authorised by the regulator but can offer certain financial services or products under the responsibility of principals. Principal firms are responsible for ensuring their ARs comply with FCA rules. While some principals do this effectively, many do not adequately oversee the activities of their ARs, according to the regulator....

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