Blog: Changes To The FCA’s Appointed Representative Regime … – Mondaq


Changes To The FCA’s Appointed Representative Regime

18 January 2023

Herrington Carmichael

To print this article, all you need is to be registered or login on

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

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from UK

Regulation Round Up

Proskauer Rose LLP

Welcome to the UK Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.

Dutch REIT Regime: Abolishment Postponed

Alvarez & Marsal

On 9 December 2022, the Dutch Ministry of Finance announced that the abolishment of the Dutch REIT regime will be postponed from 1 January 2024 to 1 January 2025.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s