The FCA proposes significant changes to the principal-appointed representatives business model

17 December 2021

Earlier this month, the FCA proposed a package of comprehensive reform to the appointed representative (AR) business model. This follows a series of high-profile cases that have shone the spotlight on the weaknesses in the current requirements of the AR regime.

To mitigate the increasing risk of harm to consumers as the regime evolves from what was originally intended, the FCA is proposing to:

  • Require principals to provide significantly more information on their ARs and how they are overseen.
  • Provide more detailed rules and guidance on its expectations of principals in monitoring and providing oversight of ARs

The consequences of these changes will be significant investments in monitoring and reporting processes with potential impacts on business viability and continuity.

Download our Summary of the proposals and the implications for Principal firms and ARs.

Download our Summary

Next steps

Stakeholders are encouraged to read and respond to the consultation which closes on 3 March 2022. Final rules are expected to be published later in H1 2022.