FCA tightens AR rules to cut mis-selling risk

Greater onus on principals

Jenna Brown
clock • 2 min read

The regulator has introduced tighter rules which make authorised firms more responsible for the actions of their appointed representatives (ARs).

It said the rules would improve oversight of ARs in a bid to stamp out mis-selling and improve consumer outcomes. The new rules mean authorised firms - known as principals - will be more responsible for the actions of their ARs. The FCA explained ARs are not authorised by the regulator but can offer certain financial services or products under the responsibility of principals. Principal firms are responsible for ensuring their ARs comply with FCA rules. While some principals do this effectively, many do not adequately oversee the activities of their ARs, according to the regulator....

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

The COVER Review: Consumer Duty changes, a new protection club and healthcare updates

The COVER Review: Consumer Duty changes, a new protection club and healthcare updates

Week commencing 29 September 2025

COVER
clock 03 October 2025 • 1 min read
FCA to streamline Consumer Duty requirements

FCA to streamline Consumer Duty requirements

Regulator to consult on changes to rules in H1 2026

Sahar Nazir
clock 01 October 2025 • 2 min read
Firms face challenges producing Consumer Duty board reports: CII

Firms face challenges producing Consumer Duty board reports: CII

Data is a key roadblock

Cameron Roberts
clock 26 September 2025 • 2 min read