New FCA Reporting requirements for Appointed Representatives (AR)
- By MICHAEL HANSON
- •
- 05 Dec, 2022
YOUR COMPLIANCE MATTERS – New FCA Reporting requirements for Appointed Representatives (AR)
Relevance: All Firms with Appointed Representatives.
Action required: Ensure that your Connect Principal User is correct, and that you respond to the FCA information request by 28.02.23.
Having completed its Consultation, the FCA has published final rules, updating Firm’s obligations with regard to ARs. The new rules will come into effect from 08.12.22.
These include enhanced reporting requirements in the form of an Appointed Representatives S165 request which will be sent by email to the Principal User on Connect. Therefore, firms should ensure details of their Connect Principal User are correct.
The FCA has recently sent out a reminder as part of its ‘Regulation round-up’ for November including the following:
‘As part of our enhanced reporting requirements, principal firms will receive a mandatory section 165 data request for information about their ARs. We will issue the request between 8 to 10 December…If you are a principal firm and you do not receive the S165, please check your spam/junk folder in the first instance. If the request is not there, please email the FCA at firm.queries@fca.org.uk and a new email and corresponding link will be sent to you.
The S165 request will be accompanied by detailed guidance explaining how to complete the request and will also include a link to FAQs that will be published on our website on 8 December.
Firms will have until 28 February 2023 to respond to the request. The FCA report will include the following:
| A |
The primary reason for the principal’s appointment of the AR. |
| B |
The nature of the regulated activities the principal permits the AR to undertake (primary and additional markets in which the AR will undertake regulated activity). |
| C |
Whether the AR provides services to retail clients. |
| D |
Whether the AR is part of a group. If so, provide the name of the parent undertaking(s). |
| E |
Whether any individuals from the AR will be seconded or contracted to the principal firm to carry on portfolio management and/or dealing activities, and if so, explain the rationale for entering into such an arrangement. |
| F |
Whether the AR was previously an AR of a different principal, and if so, why the previous relationship was terminated. |
| G |
Information about the nature of the financial arrangements between the principal and the AR |
| H |
Non-regulated business of the AR. This includes: i. The nature of the non-regulated business (financial or non-financial services activity); ii. The proportion of the non-regulated activities compared to the regulated activities. |
| I |
Anticipated revenue from regulated and non-regulated activity during the coming year. |
