Navigating the FCA's New Rules on the Appointed Representative Regime

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Introduction to the FCAs New Rules on the
Appointed Representative (AR) Regime

• Overview Briefly introduce the new changes
  taking effect from 08 December 2022.
• Purpose Explain the objective of the FCAs
  revised rules to enhance the oversight and
  governance of ARs.

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Background and Purpose of the AR Regime

• Initial Intent Outline why the AR regime was
  initially createdto allow individuals to conduct
  regulated activities without full authorisation.
• Current Scope Describe how the model has evolved
  to cover a broader range of industries and
  companies.

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Key Issues Identified by the FCA

• Main Concerns
• Lack of due diligence by principal firms before
  appointing ARs.
• Inadequate oversight and supervision of ARs by
  principal firms.
• Misleading or unfit products entering the market
  due to insufficient control.
• Regulatory Response Collaboration with HM
  Treasury for potential legislative changes.

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Summary of Changes to the AR Regime

• Enhanced Reporting Requirements
• ARs must provide more detailed information to
  principal firms (business model, complaints data,
  revenue information).
• Increased Responsibilities for Principals
• Enhanced oversight, termination procedures, and
  annual self-assessments.
• Compliance Obligations Principal firms must
  align their processes to the new rules and
  prepare for FCA data requests.

5
Next Steps for Affected Firms

• Action Points
• Review and update internal processes and
  procedures to comply with the new rules.
• Prepare for the FCA data request form, which will
  be issued between 8-10 December 2022.
• Ensure that the principal user information on the
  FCA Connect system is up-to-date by 28 February
  2023.
• Support from MEMA Consultants Highlight how MEMA
  Consultants can assist firms in navigating these
  changes and ensuring compliance.

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