What is an Appointed Representative?

In a nutshell

An Appointed Representative (AR) is a firm or person who conducts regulated activity under the responsibility of an authorised financial services firm, known as “the principal”. The principal firm assumes responsibility to ensure the AR is competent and complies with FCA regulation.

The AR regime was first established in 1986 for investment services activity but later adapted and applied for a broader range of financial services activity through the Financial Service and Markets Act 2000 (FSMA).

Responsibilities of a principal firm

• Have a written agreement with the AR setting out what they can do.
• Conduct an assessment of the AR prior to representation to ensure they’re competent and suitable.
• Notify FCA 30 days before appointment of AR.
• Review AR activities, business, and senior management regularly.
• Have compliant Professional Indemnity Insurance to cover activities of current and former ARs when required to do so.

Sources/links

• Principals and appointed representatives – fca.org.uk