FCA sets out improvement areas for AR oversight

Says some principal firms take ‘bare minimum’ approach

Isabel Baxter
clock • 3 min read

The Financial Conduct Authority (FCA) has set out good practice and areas for improvement to help principal firms effectively monitor their appointed representatives (ARs).

The findings followed a review of how well principals were meeting its enhanced AR rules introduced in December 2022. The analysis involved a telephone survey with 251 principals and in-depth assessments of documentation from 23 firms. The examples of good practice that the FCA identified from principals included keeping clear documentation to show compliance with its enhanced rules and using a broad range of checks and information to oversee and monitor ARs' activities. However, the regulator found some firms were taking a "tick-box approach" to complying with its rules, relying on b...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

IPT up to £7.6bn in 24/25

IPT up to £7.6bn in 24/25

£853m in January 2025

Cameron Roberts
clock 21 February 2025 • 1 min read
FOS CEO Abby Thomas steps down

FOS CEO Abby Thomas steps down

James Dipple-Johnstone and Jenny Simmonds will cover

Isabel Baxter
clock 07 February 2025 • 1 min read
Regulator soft launches £2.5m scam checker tool to help protect consumers

Regulator soft launches £2.5m scam checker tool to help protect consumers

‘FCA Firm Checker’ is live for small number of users

Isabel Baxter
clock 05 February 2025 • 1 min read