We set out the final rules for the Appointed Representative regime to enhance consumer protection and help protect markets. We also respond to feedback to CP21/34.
We consulted on changes to protect consumers and address harms across all the sectors where principals and ARs operate. We are requiring principals to provide more information on Appointed Representatives (ARs), and clarifying and strengthening the responsibilities and expectations of principals.
The changes took effect on 8 December 2022. Principals should read our updated rules and expectations and take necessary steps to ensure they comply.
As part of our enhanced reporting requirements, between 8 and 12 December 2022 we sent principal firms a Section 165 request. The request asks principals to provide information about their ARs.
Firms have until 28 February 2023 to respond.
We also remind firms that new AR notification forms came into effect on 8 December 2022. Find out more on our pages about:
The Appointed Representatives (AR) regime is set in primary legislation. It allows self-employed representatives to engage in regulated activities without having to be authorised. Where harm occurs, it is often because principals do not do adequate due diligence before appointing an AR, and/or due to poor ongoing control and oversight.