On 8 December 2022, the FCA’s new rules for the Appointed Representatives (AR) regime come into effect.
In our previous briefing note covering the FCA’s Policy Statement on the updated AR regime we described 5 key areas of change and key steps for principal firms to consider when preparing for the new regime.
As part of the FCA’s enhanced reporting requirements under the updated AR regime, principal firms will need to provide information about new and current ARs. The regulator intends to issue a Section 165 data request in December 2022. Firms should expect to receive this between 8 December and 10 December 2022.
This will include:
- reasons for any appointments;
- nature of regulated business;
- whether any unregulated business is conducted;
- anticipated revenue;
- nature of financial arrangements between principal and AR; and
- complaints information and whether the AR is part of a group.
The Section 165 data request will go to the Principal User on Connect.
Firms will have until 28 February 2023 to respond.
The FCA is committed to improving and strengthening the AR regime. This includes targeted supervision of principal firms across the whole financial services sector, by a new AR department.
