Changes to the FCA’s Appointed Representative Regime
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 firstname.lastname@example.org.
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.
Partner, Corporate and Commercial Law
t: 01276 748 384
Latest News & Insights
Revised Immigration Rules – Building Blocks for Overseas Construction Workers?
Post-Brexit, industries across the board were rocked to the core. Many overseas workers left the...
Lineker, the BBC and do you have a social media policy?
In the wake of a weekend where Gary Lineker has gone from a household football name to a person...
Women at work – pay, pension and #embraceequity
On International Women’s Day this year we reflect on some recent updates in relation to women’s...
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: Data Protection in the Workplace
This month’s episode covers data protection in the workplace. We will be looking at what the laws on data protection currently require…
All in a Day’s Work: Employment Contracts in a Nutshell
In this month’s ‘All in a Day’s Work’ podcast episode we will be discussing employment contracts and what you need to include in them by law.
All in a Day’s Work: Holiday and Annual Leave
In this month’s ‘All in a Day’s Work’ podcast episode we provide an overview of all things related to holiday and annual leave.
Top Legal Insights
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?
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?
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 2023’ by the legal directory Legal 500 and listed in The Times ‘Best Law Firms 2023’. Herrington Carmichael has offices in London, Camberley, Reading, Ascot and Wokingham.
Building 2 Watchmoor Park, Riverside Way, Camberley, Surrey GU15 3YL
+44 (0)1276 686 222
Reading (Appointment only)
The Abbey, Abbey Gardens, Abbey Street, Reading RG1 3BA
+44 (0)1276 686 222
Ascot (Appointment only)
102, Berkshire House, 39-51 High Street, Ascot, Berkshire SL5 7HY
+44 (0)1344 623388
London (Appointment only)
60 St Martins Lane, Covent Garden, London WC2N 4JS
+44 (0)203 326 0317
Commercial Property Lawyers
Dispute Resolution Lawyers
Divorce & Family Lawyers
Immigration Law Services
Private Wealth & Inheritance Lawyers
Startups & New Business Lawyers
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.
© 2023 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.
Herrington Carmichael is authorised and regulated by the Solicitors Regulation Authority with registration number 446245.