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The Financial Conduct Authority (FCA) has published a Dear CEO letter setting out their high level expectations of principal firms which have appointed representatives (ARs).
As highlighted in a separate Regulation Update (https://www.biba.org.uk/regulation-updates/fcas-thematic-finds-failings-control-oversight-appointed-representatives/) the FCA review of firms operating a network of ARs uncovered widespread shortcomings in principal firms’ understanding of the risks posed by operating ARs and consequently the control environments these firms had put in place were often inadequate.
In having Appointed Representatives, a firm is lending its regulatory permissions to someone else and with that, it is lending its name. A firm needs to put in place arrangements that let it be sure that its ARs (or AR if it has just one) are(is) operating in a way that upholds the firm’s good name and reputation.
The Dear CEO letter reminds firms that have ARs, that the FCA regards any act or omission of the AR, as an act or omission of the principal firm itself.
Members may access the FCA’s letter using the link below.
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk
The post FCA publishes Dear CEO letter on Appointed Representatives appeared first on British Insurance Brokers' Association.
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