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....

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA moves to create simplified financial advice regime

FCA moves to create simplified financial advice regime

‘Proportionate qualifications to keep costs lower’

Jenna Brown
clock 30 November 2022 • 7 min read
Consumer Duty rules define 5.6 million as ‘vulnerable investors’

Consumer Duty rules define 5.6 million as 'vulnerable investors'

Health, life events and financial resilience play a factor

Jenna Brown
clock 30 November 2022 • 1 min read
Customer data: The chickens are coming home to roost

Customer data: The chickens are coming home to roost

'I remain pessimistic about how quickly things will improve.'

Tim Sargisson
clock 29 November 2022 • 3 min read