The FCA published its findings this month on how Principal Firms have embedded the new rules for operating with Appointed Representatives (ARs)
The review found:
- 1 in 5 principals had not carried out a required self-assessment or annual review of their ARs.
- Approximately half of principals were not regularly reviewing their AR agreements.
- A third of principals were not using data or management information to keep tabs on whether ARs were acting within the scope of AR agreements.
- Most firms had not changed their AR onboarding or termination procedures since the rules were introduced.
Product Partnerships offer Principal Appointed Representative audits for firms to assess their oversight and controls. Give us a call for an informal chat about how we can help.