Q&As

What are the key considerations when a firm contracts with an appointed representative?

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Published on LexisPSL on 28/11/2013

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • What are the key considerations when a firm contracts with an appointed representative?
  • Contracts and appointed representatives
  • Steps
  • 1. Classify
  • 2. Due diligence
  • 3.Notify
  • 4. Post appointment
  • 5. Drafting the contract
  • 6. Termination

What are the key considerations when a firm contracts with an appointed representative?

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Contracts and appointed representatives

Chapter 12 of the Financial Conduct Authority (FCA)'s Supervision Manual (SUP 12) and the Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001, SI 2001/1217 (Appointed Representatives Regulations) contain specific provisions on the contractual requirements which a firm (referred to as a principal) should adhere to when entering into contractual arrangements with an appointed representative (AR), introducer appointed representative, tied agent or EEA tied agent.

Steps

The following steps will assist in the process of assessing and appointing the services of an appointed representative and in the creation of a contract that meets regulatory requirements applicable to appointment and for the lifecycle of the principal/appointed representative relationship.

1. Classify

Decide what category of appointed representative is being engaged by the firm, as each category, while being subject to the general regulations, will be subject to its own exceptions. This will

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