he Financial Conduct Authority (FCA) expects principal firms to exercise effective oversight and supervision of their appointed representatives (ARs) to ensure compliance with regulatory requirements and prevent harm to consumers and markets. Key expectations include:
- Pre-Appointment Due Diligence – Principals must conduct thorough checks before appointing an AR, assessing its financial stability, business model, and the competence of its senior management.
- Ongoing Monitoring – Principals must regularly review their ARs’ activities, ensuring they remain compliant with FCA rules. This includes risk assessments, audits, and scrutiny of financial promotions.
- Clear Responsibilities & Controls – Principals must set out clear policies, training, and procedures for ARs, ensuring that they act within their scope of permissions.
- Data & Reporting – Principals must collect and analyse relevant data on their ARs’ performance and compliance, reporting key issues to the FCA when necessary.
- Intervention & Termination – Where issues arise, principals should take swift action to address concerns, which may include terminating the AR arrangement if necessary.
Effective controls and continuous adviser monitoring are at the core of our Network’s regulatory requirements. A dedicated Compliance department is essential to ensure the quality and performance of our Authorised Representatives (ARs).
While regular file reviews, grading, annual observations, and Fit & Proper assessments might be challenging, they are crucial for demonstrating ongoing competence and achieving the best customer outcomes.
In addition to these measures, the FCA mandates that Networks promptly address any breaches and report them. Although this aspect of the process is not always welcome, strict adherence to FCA guidelines is non-negotiable.
To ensure clarity about the rules and the consequences of non-compliance, below is a list of the fees that may be applied. The most effective way to avoid these fees is to consistently follow the guidelines.
These fees are as follows:
If you have any questions about any of the above, please do not hesitate to contact the Compliance team, who will be happy to help: compliance@connectmortgages.co.uk
Regards
Alan Baldwin
Director of Compliance & Operations
For any questions or queries, contact the Compliance Team
Call : 01708 676110
Email : compliance@connectmortgages.co.uk