FCA sets out improvement areas for AR oversight

Regulator slams some principal firms for taking ‘bare minimum’ approach

Isabel Baxter
clock • 3 min read

The Financial Conduct Authority (FCA) has set out good practice and areas for improvement to help principal firms effectively monitor their appointed representatives (ARs).

The findings followed a review of how well principals were meeting its enhanced AR rules introduced in December 2022. The analysis involved a telephone survey with 251 principals and in-depth assessments of documentation from 23 firms. The examples of good practice that the FCA identified from principals included keeping clear documentation to show compliance with its enhanced rules and using a broad range of checks and information to oversee and monitor ARs' activities. However, the regulator found some firms were taking a "tick-box approach" to complying with its rules, relying on b...

To continue reading this article...

Join Professional Adviser for free

  • 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 looking at child trust funds in closed book products review

FCA looking at child trust funds in closed book products review

Publication expected this year

Jen Frost
clock 26 February 2026 • 2 min read
Financial firms risk missing a golden opportunity in targeted support

Financial firms risk missing a golden opportunity in targeted support

'Targeted support’s success depends upon firm involvement'

Mark Glover
clock 24 February 2026 • 4 min read
Reality TV 'finfluencers' sentenced

Reality TV 'finfluencers' sentenced

Had combined Instagram following of 4.5 million

Jen Frost
clock 23 February 2026 • 2 min read