The UK Financial Conduct Authority (FCA) has set out new rules in relation to its appointed representatives (AR) regime. The changes will take effect on December 8, 2022, following a four-month implementation period, and will affect all firms that currently have an AR or intend to have an AR in the future – and ARs themselves.
The AR regime is a longstanding feature of the UK financial services landscape and allows a person (the AR) to carry out certain regulated activities without being authorised by the FCA themselves. As the principal firm must be authorised by the FCA, the AR is able to operate under the cover of the principal’s licence, though the principal remains ultimately responsible for the regulated activities performed by the AR.
