FCA urges principal firms to strengthen inactive AR oversight

A recent review of supervisory data by the regulator has found that unexplained inactivity among ARs can be a warning sign of deeper weaknesses in firms' monitoring and risk management frameworks. While there are legitimate reasons why some ARs may not carry out regulated activities for periods of time, the FCA has said that firms are expected to understand and clearly explain those reasons. Inactivity raises red flags The FCA's findings showed that a lack of reported regulated revenue does not always mean an absence of activity. In some sectors - such as retail finance, funeral pla...