Tougher Regime Dawns for Principals And Appointed Representatives

Where detriment occurs, the FCA considers it is often because principals do not perform adequate due diligence before appointing an AR, and from poor ongoing control and oversight.  (Source: HMT’s Call for Evidence on Appointed Representatives Regime)

The FCA has confirmed its updated approach to the Appointed Representatives Regime (the Regime) to support the objective of reducing harm to consumers.

Increased Reporting And Additional Requirements

We see increased reporting to the FCA and additional requirements upon Principal Firms.

The revised Regime aims to maintain its flexibility but ensure that Principal Firms are fulfilling their obligations. The ability to demonstrate effective oversight of Appointed Representatives is vital.

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Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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