Understanding Appointed Representatives and Principal Firms: Key Responsibilities and Compliance

This presentation provides a comprehensive overview of the relationship between Appointed Representatives (ARs) and Principal Firms within the FCA regulatory framework. It outlines the roles and responsibilities of Principal Firms in ensuring the compliance of ARs, the different types of ARs and their regulatory implications, and the importance of controlled functions and approved persons. Additionally, it highlights how MEMA supports Principal Firms in managing compliance and maintaining effective oversight of their ARs.

1. Introduction to Appointed Representatives
Definition: Appointed Representative (AR) and Principal Firm.
ARs can conduct regulated activities through their relationship with an
FCA-authorised Principal Firm.
Principal Firms are responsible for the compliance of ARs.

2. Responsibilities of Principal Firms
Ensure AR suitability before appointment.
Maintain oversight of ARs’ compliance with FCA rules.
Charge ARs for ongoing compliance oversight.

3. Types of Appointed
Representatives
Introducer Appointed Representatives: Restricted
activities, lower compliance risk.
Full Appointed Representatives: Conduct regulated
activities with more freedom but under Principal’s
limitations.
Importance of compliance with FCA rules and
agreements.

4. Controlled Functions and
Approved Persons
Controlled Functions: Designated roles requiring FCA
approval.
Approved Persons Regime: Applies to ARs, ensuring
individuals meet FCA’s standards.
Personal accountability and potential fines for non-
compliance.

5. How MEMA Supports Principal
Firms
Assistance in onboarding ARs and ensuring compliance.
Creating frameworks for compliance monitoring.
Ongoing support and advice on FCA rules and compliance.

6. CONTACT US
[email protected]
03301330811

Suite 1810, Unit 3a,34-35 Hatton Gardens, Holborn, EC1N 8DX
https://www.memaconsultants.com/

7. Thank
You