FCA warns ARs should not be seen as easy route into regulation

Principals have ended relationships with over 1300 ARs

Jaskeet Briah
clock • 2 min read

The Financial Conduct Authority (FCA) has warned that becoming an appointed representative (AR) should not be viewed as an easy route into the regulatory perimeter.

In the regulator's latest update on its AR regime, published yesterday (28 September), the FCA detailed that it has often seen principal firms submitting applications without declaring their full regulatory history. Specifically, there has been frequent examples among "outlier firms with weak AR recruitment arrangements", the FCA noted, although its data suggests most firms do some checks. Issues that have been encountered with these outlier firms include applications being ‘partially' or ‘inadequately' completed, with references either not being asked for or not checked, and overlook...

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