What’s an FCA Appointed Representative (AR)?

The FCA’s website states that “an appointed representative is a person or firm who conducts regulated activities and acts as an agent for a firm directly authorised by the FCA.”

The directly authorised firm is known as the appointed representative’s ‘principal’.

How does the AR / Principal Relationship Work?

Firstly, there needs to be a written contract between the principal and the AR documenting the arrangement.  It’s the principal’s responsibility to ensure the AR complies with FCA regulations. The AR has to allow the principal access to its premises, staff and records (as applicable) so they can carry out their supervisory responsibilities.

What are the Principal’s Responsibilities?

If you’re thinking about appointing an AR, then here are a few key questions to ask yourself: