PS22/11: Improving the Appointed Representatives regime

Consultation opens: CP21/34
03/12/2021
Consultation closes
03/03/2022
Policy Statement
03/08/2022
03/08/2022

We set out the final rules for the Appointed Representative regime to enhance consumer protection and help protect markets. We also respond to feedback to CP21/34.

Read PS22/11  (PDF)

What we are changing

We consulted on changes to protect consumers and address harms across all the sectors where principals and ARs operate. We are requiring principals to provide more information on Appointed Representatives (ARs), and clarifying and strengthening the responsibilities and expectations of principals.

Who this is for 

  • all firms that currently have ARs 
  • firms that intend to have ARs in the future
  • ARs themselves

Next steps 

The changes will take effect on 8 December 2022. Principals should read our updated rules and expectations and take any necessary steps to be ready to comply. As part of our enhanced reporting requirements, principal firms should expect to receive a request for data (this will be through a Section 165 request – our power to require information and documents from firms) about their appointed representatives later in 2022.

Background 

The Appointed Representatives (AR) regime is set in primary legislation. It allows self-employed representatives to engage in regulated activities without having to be authorised. Where harm occurs, it is often because principals do not do adequate due diligence before appointing an AR, and/or due to poor ongoing control and oversight.  

Page updates

07/03/2022: Information changed next steps updated as consultation closed
13/01/2022: Addendum added 13 January 2022 addendum