We are asked regularly about the position of ARs in relation to SM&CR. The answer is that ARs are NOT subject to the SM&CR. They remain under the Approved Persons Regime for the meantime. However, some clarification about the position on ARs and the Directory is appropriate.
We have written previously about the changes to the Financial Services Register and outlining details of the new FCA Directory. You can read that article in full here.
We highlighted that Directory Persons broadly fall into 3 categories of individuals:
- all Certified staff (those holding a certification function under the SM&CR)
- directors who are not performing Senior Management Functions (both executive and non-executive);
- other individuals who are sole traders or Appointed Representatives (ARs) where they are undertaking business with clients and require a qualification to do so.
The FCA’s guidance on the Directory refers to individuals in the last two bullet points as ‘Assessed Persons’ without providing any definition.
However, although SM&CR does not apply to AR firms, an individual who is an appointed representative or tied agent of an SM&CR firm; or employed or appointed by one of these firms, where they are undertaking business with clients and require a qualification to do so, will be an “Appointed Representative Directory Person” and will need to be added to the Directory. The glossary definition of this term can be read here.