Appointed Representatives and the FCA Directory

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.

 

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

For information.

Action Required By You

  • Firms with Appointed Representatives should add all individuals meeting the definition of an ‘Appointed Representative Directory Person’ to the Directory before 9 December 2020;

  • If you have require further information or have any questions, please contact your ATEB Consultant, or contact ATEB.

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Technical Manager - Often referred to as the Oracle or the Sage, Alistair has a wealth of financial services experience. He is our go-to Technical Manager and enjoys nothing more than a complicated conundrum. Feel free to test his renowned knowledge by getting in touch.

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