FCA tightens AR rules to cut mis-selling risk

'Regulatory lacuna'

Jenna Brown
clock • 3 min read

The regulator has introduced tighter rules which make authorised firms more responsible for the actions of their appointed representatives (ARs).

It said the rules would improve oversight of ARs in a bid to stamp out mis-selling and improve consumer outcomes. The new rules mean authorised firms - known as principals - will be more responsible for the actions of their ARs. The FCA explained ARs are not authorised by the regulator but can offer certain financial services or products under the responsibility of principals. Principal firms are responsible for ensuring their ARs comply with FCA rules. While some principals do this effectively, many do not adequately oversee the activities of their ARs, according to the regulator....

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Andrew Goodwin: Is targeted support really the revolution we need?

Andrew Goodwin: Is targeted support really the revolution we need?

'Forgive me for being a party pooper, but...'

Andrew Goodwin
clock 11 April 2025 • 4 min read
CII urges firms to put vulnerable customers' needs 'ahead of targets'

CII urges firms to put vulnerable customers' needs 'ahead of targets'

Bosses must ‘walk the walk’ on vulnerable clients

Jenna Brown
clock 10 April 2025 • 2 min read
The FCA's DE&I volte-face: Why doing the right thing still matters

The FCA's DE&I volte-face: Why doing the right thing still matters

Delayed NFM regulations set to take effect in June

Jo Keddie
clock 07 April 2025 • 5 min read