Recruiting an appointed representative as a principal

If you are responsible for an appointed representative (AR), you are accountable for the products they sell, so you should make sure that adequate checks are made on any prospective hires.

You are responsible for keeping all the required information and records for future inspections.

This includes verifying that:

  • the firm is financially stable
  • the staff are competent – it may not be enough to just rely on confirmation from a previous employer without doing your own assessment and reference checks

By using a risk-based approach when you appoint your AR you can set a level for ongoing monitoring.

You are also responsible for making sure that the firm delivers the 6 'fair treatment of customers' outcomes in the same way a directly authorised firm would do.

You should also think about the relationships they have with other authorised firms – if they work for more than one authorised firm, you will need a Multiple Principal Arrangement so that one principal firm has regulatory responsibility over the AR.