AR reforms: Who really pays when things go wrong?

Back in July 2023, the Financial Conduct Authority (FCA) wrote directly to principal firms with appointed representatives (AR) and delivered a pretty clear message: you are responsible for holding compliant professional indemnity insurance (PII) that covers the activities of your current and former ARs. It's not enough for the AR to hold its own cover. The obligation sits with the principal.  That letter wasn't subtle. The FCA had analysed its data and found that a number of principal firms either didn't have PII that covered their ARs' activities, or had policies with exclusions so ...