If you decide to move from being an appointed representative (AR) to being authorised, find out how to give notice to your principal.
ARs carry out certain regulated financial activities for an authorised firm – their principal. But if you're an AR, you can apply to become an authorised firm yourself.
How to give your principal notice
Your principal might say you can’t carry out regulated activities during your notice period. If so, you may not be able to submit applications on behalf of your clients.
Applying and getting approved for authorisation doesn't override any contractual obligations you owe to your principal – these are things you should discuss with them.
Tell your principal(s) you may need them to provide a reference
Let them know in advance that you're applying for authorisation, and that we might contact them for a reference to process your application. Please do this in good time to avoid delays with your application.
Arrange access to your client files
Your principal is responsible for any regulated business you carried out while you were its AR. You'll need to agree with your principal how they can have direct access to your client files in case of a client complaint. Typically, we expect you to put an agreement in place in respect of future liabilities that arise from an AR's actions.
Check you can continue dealing with your existing customers
If you want to carry on dealing with your existing customers, check that your agreement with your principal allows you to do this.
What to know before applying to us
Read our main page about authorisation and make sure you understand about being ready, willing and organised.
If you become directly authorised by us you'll become responsible for, among other things:
- having professional indemnity insurance
- the liabilities of your business
- considering who will perform appropriate senior management functions
You'll need to have systems in place to fulfil these obligations.
When you become directly authorised, you'll also get a different Firm Reference Number (FRN).