Move from being an appointed representative to being directly authorised

When appointed representatives undertake regulated financial activities on behalf of an authorised firm, they may benefit from being directly authorised. 

An appointed representative (AR) should consider becoming directly authorised if they meet certain criteria.

What to know before applying for authorisation

Read our main page about authorisation and ensure you are ready, willing and organised. 

If you become directly authorised by us, you'll become responsible for, among other things:  

You'll need to have systems in place to fulfil these obligations. Some firms will also need to have professional indemnity insurance.  

When you become directly authorised, you'll also get a different Firm Reference Number (FRN). 

How to give your principal notice

Your principal might say you can’t carry out regulated activities during your notice period. 

Applying and getting approved for direct authorisation doesn't override any contractual obligations you owe to your principal – these are things you should discuss with them and should be in your principal/AR agreement.

  1. 1

    Tell your principal(s) you may need them to provide a reference

    Let them know in advance that you're applying for direct 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.

  2. 2

    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.

  3. 3

    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.

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: Information changed Page updated following publication of Policy Statement PS22/11: Improvements to the Appointed Representatives regime