Appointed representatives

UK regulators are considering how they can strengthen the regime to enhance standards and reduce risk.

By Nicola Higgs and Charlotte Collins

On 3 December 2021, the FCA published a Consultation Paper (CP21/34) on changes to its rules regarding the Appointed Representatives (AR) regime. HM Treasury simultaneously published a Call for Evidence, seeking views on how market participants use the AR regime, how effectively the regime works in practice, potential challenges associated with the regime, and possible future legislative reforms.

The FCA’s proposed rule changes are wide-ranging and would significantly increase the compliance burden for firms that use ARs as part of their business model. Both papers will be of interest to businesses across all sectors that use, or may consider using, the AR framework.