Are appointed representatives (ARs) regulated by the FCA?

ARs are not authorised or regulated by the FCA; it is the principal firm that is responsible for making sure the AR’s activities comply with the relevant regulations otherwise the principal firm could be liable. However, principal firms must notify the FCA when it intends to appoint a new AR. AR firms appear under the principal firm’s financial services register profile and obtain a firm identity number. It is important that the principal firm and the AR have a good working relationship and communicate regularly.