FCA warns principals against ‘tick-box’ approach to ARs
A review by the Financial Conduct Authority of its rules on appointed representatives has found some firms taking a tick-box approach to compliance, relying on basic information like website checks, or using self-declarations from their ARs to demonstrate effective oversight.
The watchdog has set out good practice and areas for improvement to help principal firms effectively monitor ARs in light of the review.
Regulation came into force in December in 2022 to improve outcomes for consumers and markets through targeted supervision of principal firms across the whole financial services sector. It increased scrutiny on firms applying for authorisation and as they appoint ARs.
The new regime followed a consultation with the regulator warning it was seeing a wide range of
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