The Government and the Financial Conduct Authority have published a call for evidence on how appointed representatives (ARs) are used in the current regulatory regime, with a closing date of 3 March 2022.
These proposals will apply to smaller, independently trading ARs whose primary business involves regulated activity, as well as firms using the AR regime as ‘regulatory hosts’ where the principal makes its permissions available for use by its ARs.
HM Treasury is consulting on AR legislation, whilst the FCA is reviewing the detailed standards for principal firms.
The Treasury is considering changing the scope of the AR regime, applying more regulatory requirements directly to ARs, and extending the ability of the Financial Ombudsman Service to investigate AR-related complaints.
The FCA is proposing improvements to regulatory oversight by setting a requirement on principals to disclose more information on their AR’s activities, clarifying expectations of principals and their responsibilities, and inviting views on business models where ARs are larger than the principal.
If you have any input on this topic, contact [email protected].
