What are the responsibilities of the Principal Firm?

Principal Firms must make sufficient checks on the firm looking to become an Appointed Representative (AR) to make sure they are financially stable and competent in performing regulated activities.

The Principal firm is responsible for its AR’s services and products, and must ensure the delivery is made in compliance with the Principal firm’s requirements. To this extent, the Principal will be involved in setting up the compliance infrastructure of the AR and provide the AR with the appropriate support in addition to the monitoring required from the Principal.