Changes to the FCA’s Appointed Representative Regime

Jan 17, 2023

On the 8th December 2022, the Financial Conduct Authority (“FCA”) made changes to Chapter 12 of the Supervision Manual (SUP 12) of the FCA Handbook, which is concerned with the appointed representative (“AR”) regime.

The appointed representative regime allows ARs to engage in regulated activities without having to be FCA authorised. The FCA notes in PS22/11 that whilst the regime has benefits, they are infact seeing a wide range of harm across a multitude of sectors where AR’s are appointed. This is due to the fact that their principals are failing to undertake the necessary due diligence before their appointment, or once their role has begun, their principals are failing to provide an adequate level of oversight and/or control.

Consequently, further compliance requirements have been implemented on principals to ensure:

  • additional and more timely information of the AR’s is provided to the FCA, including the process in which the AR’s are overseen (Chapter 3, SUP 12); and

  • they adhere to the strengthened principal responsibilities and expectations (Chapter 4, SUP 12).

It is important for businesses to ensure these changes have been implemented within their policies and procedures, and that AR agreements have been reviewed to ensure that these enhanced compliance requirements can be met. The FCA has confirmed that they will be sending principal firms a section 165 request which requires them to provide information about their AR’s, the nature of their regulated business, anticipated revenue etc. This should have been received by principals between 08th –12th December 2022, and the deadline for completion is the 28th February 2023.

For further information concerning the changes to the AR regime, questions on how this will affect your business or to discuss the issues raised within this update, please contact our regulatory team on 01276 686 222 or mark.chapman@herrington-carmichael.com.

This reflects the law and market position at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought in relation to a specific matter.

Mark Chapman

Mark Chapman

Partner, Corporate and Commercial Law

Olivia Larkin

Olivia Larkin

Solicitor, Corporate & Commercial

Latest News & Insights

All in a Day’s Work: Employment Podcast Series

Our Employment team bring you a monthly podcast covering all aspects of Employment law for businesses and individuals. You can browse our podcasts below…
All in a Day’s Work: Introduction to TUPE

All in a Day’s Work: Introduction to TUPE

In this episode, we discuss the basic principles of TUPE including when a transfer arises, the impact this has on employees and how best to prepare for a potential TUPE transfer.

Top Legal Insights

 

Contract Law

Material Breach of Contract

What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?

Property Law

Commercial Lease: The Financial impact on Landlord and Tenant

Coronavirus (COVID-19) and the restrictions now in place to control its spread, are having a significant effect on many business sectors.

Divorce and Family Law

Divorce in Lockdown: Can I get some discreet legal advice?

We have spoken to clients who are unfortunately experiencing some family issues, and would like to obtain expert legal advice, yet don’t know how...

Land & Property Dispute

Restrictive Covenants – The Price of Modification

Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?

Wills, Trusts and Probate

Why is having a will so important?

It is entirely up to you if and when you want to create a Will, but it is important to be aware of the consequences of not having a Will.

Award winning legal advice

Herrington Carmichael offers legal advice to UK and International businesses as well as individuals and families. Rated as a ‘Leading Firm 2024’ by the legal directory Legal 500 and listed in The Times ‘Best Law Firms 2023 & 2024’. Herrington Carmichael has offices in London, Farnborough, Reading, and Ascot.

+44 (0)1276 686 222

Email: info@herrington-carmichael.com

Farnborough
Brennan House, Farnborough Aerospace Centre Business Park, Farnborough, GU14 6XR

Reading (Appointment only)
The Abbey, Abbey Gardens, Abbey Street, Reading RG1 3BA

Ascot (Appointment only)
102, Berkshire House, 39-51 High Street, Ascot, Berkshire SL5 7HY

London (Appointment only)
60 St Martins Lane, Covent Garden, London WC2N 4JS

Privacy Policy   |   Legal Notices, T&Cs, Complaints Resolution   |   Cookies  |   Client Feedback   |  Diversity Data

 

 

Our Services

Corporate Lawyers
Commercial Lawyers
Commercial Property Lawyers
Conveyancing Solicitors
Dispute Resolution Lawyers
Divorce & Family Lawyers
Employment Lawyers
Immigration Law Services
Private Wealth & Inheritance Lawyers
Startups & New Business Lawyers

Pay Online >

Please be aware that we have no plans to change our bank details. If you receive any indication that any of our bank details have changed please contact us before sending us any funds. We take no responsibility for monies you transfer into the wrong bank account.

© 2024 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.

Herrington Carmichael LLP is authorised and regulated by the Solicitors Regulation Authority with registration number 446245.