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Steps to becoming an Appointed Representative (AR)

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Looking to become an Appointed Representative? Read our blog on the 'Steps to becoming an Appointed Representative' with Resolution Compliance.

ACCEPTABLE AR FIRM TYPES

Due to the restrictions imposed by the Appointed Representative Regulations, we will only consider the following types of ARs:

  • Equity crowdfunders
  • Peer-to-peer lenders
  • Corporate finance advisers
  • Financial advisers
  • Fund advisers
  • Fund intermediaries
  • Insurance intermediaries
  • Lead generators

SIGN AN AR AGREEMENT WITH us

After due diligence is performed and the AR appointment is recorded on the FCA’s Financial Services Register, your agreement will be in force. Fees are paid monthly and will reflect the nature of your regulated business activities.

AUTHORISATION PROCESS

This is the first stage assessment of the AR firm and its individuals responsible for day-to-day governance.

This is undertaken by us and is a combination of our own due diligence and the FCA application process. Generally, timescales are a lot shorter than they are for a direct authorisation application.

The average time taken to appoint an AR is four weeks.

CAPITAL REQUIREMENT

The FCA capital adequacy requirement of the AR firm is met by us. The AR firm is required to demonstrate to us on an ongoing basis that it is solvent.

PI COVER

The AR firm is required to have PI cover in place.

We are able to provide this through our associated business insurance broker, Absolute Cover Limited.

Find out more

COMPLIANCE & SUPERVISION

We provide the compliance framework and issue a full compliance policy suite. A Compliance & Supervision Manager is allocated to the AR firm and is responsible for conducting regular compliance audits and for providing guidance regarding compliance matters.

Your regular compliance reporting to us will be conducted through our own online system, through which regular compliance updates are also issued to ARs.

DATA SECURITY

AR firms are required to be registered with the Information Commissioner’s Office and some may be required by us to undergo cybersecurity (penetration) tests.

COMPLIANCE MANUALS AND TRAINING

We provide a full suite of manuals tailored to your business.

Training and CPD will be provided through our own online training system, the Knowledge Centre.

CLIENT MONEY

The AR firm may control client money but not hold it. For firms that require client money arrangements, we will be able to introduce them to a payment services provider.

FCA REGDATA AND CONNECT REPORTING

Resolution Compliance, as a regulated firm, reports directly to the FCA in relation to all of its ARs. It also deals with all Connect issues, such as the approval of Approved Persons for AR firms.

CLIENT OWNERSHIP

Your clients remain yours and we will never take ownership of them.

PROGRESSION TO DIRECT FCA AUTHORISATION

You can choose whether to remain as an AR firm with us or to apply in due course for direct authorisation. If you choose direct authorisation, the application will be handled by our associated compliance adviser, Thistle Initiatives Limited.

Find out more

FCA application fees are (in most cases), £1,500 for straightforward applications, £5,000 for moderately complex applications and £25,000 for complex applications. Thistle Initiatives will charge a separate fee based on a standard tariff.

The FCA has a Service Level Agreement under which it can take up to six months to process an application it deems to be complete and twelve months for an application it deems to be incomplete.

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3 min read

Steps to becoming an Appointed Representative (AR)

Looking to become an Appointed Representative? Read our blog on the 'Steps to becoming an Appointed Representative'...