UK financial regulator Financial Conduct Authority (FCA) has come out with a statement that oversight of Appointed Representatives (ARs) is improving, but that there is more to do.
The FCA has set out good practice and areas for improvement to help principal firms effectively monitor their ARs. The findings follow a review of how principals are meeting its enhanced AR rules, introduced in 2022. The analysis involved a telephone survey with 251 principals and in-depth assessments of documentation from 23 firms.
Examples of good practice from principals included keeping clear documentation to show compliance with the FCA’s enhanced rules, and using a broad range of checks and information to oversee and monitor ARs’ activities.
But the FCA found some firms were…
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