FCA Announces Planned Changes To The Appointed Representatives Regime - Comment From Ian Manson, Kroll

Ian Manson, Managing Director, Financial Services Compliance Regulation, at Kroll, comments: 

“The decision by the FCA to consult on amendments to its Appointed Representatives regime is not surprising given the shortcomings highlighted in its October Perimeter Review.

We have been aware for some time of a number of weaker, thinly capitalised firms offering to host other firms as Appointed Representatives, yet with little or no oversight of their activities. Nevertheless, run properly, an Appointed Representative with adequate resources and supervision, should provide flexibility to new market entrants, particularly from overseas. It’s certainly promising to hear the FCA is consulting on this matter and we look forward to providing feedback in due course.”