Navigating the FCA's New Rules on the Appointed Representative Regime.pdf

This presentation provides an overview of the recent changes to the FCA's Appointed Representative (AR) regime, effective from 08 December 2022. It covers the evolution and purpose of the AR regime, key issues identified by the FCA, and the new requirements imposed on principal firms and ARs. The changes include enhanced reporting obligations and increased responsibilities for principal firms, aimed at improving oversight and reducing potential harm to consumers. The presentation concludes with actionable steps for affected firms to ensure compliance with the new rules.

1. Introduction to the FCA’s New
Rules on the Appointed
Representative (AR) Regime
Overview: Briefly introduce the new changes taking effect
from 08 December 2022.
Purpose: Explain the objective of the FCA’s revised rules to
enhance the oversight and governance of ARs.

2. Background and Purpose
of the AR Regime
Initial Intent: Outline why the AR regime was initially created
—to allow individuals to conduct regulated activities
without full authorisation.
Current Scope: Describe how the model has evolved to
cover a broader range of industries and companies.

3. Key Issues Identified
by the FCA
Main Concerns:
Lack of due diligence by principal firms
before appointing ARs.
Inadequate oversight and supervision of ARs
by principal firms.
Misleading or unfit products entering the
market due to insufficient control.
Regulatory Response: Collaboration with HM
Treasury for potential legislative changes.

4. Summary of Changes to the AR
Regime
Enhanced Reporting Requirements:
ARs must provide more detailed information to principal
firms (business model, complaints data, revenue
information).
Increased Responsibilities for Principals:
Enhanced oversight, termination procedures, and annual
self-assessments.
Compliance Obligations: Principal firms must align their
processes to the new rules and prepare for FCA data
requests.

5. Next Steps for Affected Firms
Action Points:
Review and update internal processes and procedures to comply with the
new rules.
Prepare for the FCA data request form, which will be issued between 8-10
December 2022.
Ensure that the principal user information on the FCA Connect system is
up-to-date by 28 February 2023.
Support from MEMA Consultants: Highlight how MEMA Consultants can assist
firms in navigating these changes and ensuring compliance.

6. CONTACT US
[email protected]
EMAIL
+ 03301330811
MOBILE
Suite 1810, Unit 3a,34-35 Hatton Gardens, Holborn,
EC1N 8DX
MAILING ADDRESS

7. Thank You