Q: Must I answer the question ‘Do FCA-regulated activities form the core business of the firm'?
A: Yes. All firms must answer this question. ‘Core business’ for this purpose is the activity from which the largest percentage of the firm's gross income is derived.
Q: What should I put under ‘If not, specify type of core business’?
A: Your firm should specify its core business using the drop-down list provided. If none of the categories provided applies to your firm's business, you should select ’Other'.
Q: What is an Appointed Representative (AR)?
A: An AR is a separate legal entity (sole trader, partnership or limited company) that undertakes regulated activities as an agent of an authorised firm. The authorised firm is fully responsible for the regulated activities undertaken by the AR, including any liabilities that might arise for ensuring the AR complies with FCA rules.
There must be a written contract between the authorised firm and the AR documenting this arrangement.
Chapter 12 of our Handbook's Supervision Manual[1] (SUP 12) details all of the rules and guidance related to the registering, removing and monitoring of ARs.
If you’re a principal firm for an AR, find out what your responsibilities are and when to notify us[2].
Q: What is a 'secondary' Appointed Representative (AR)?
A: An AR is a secondary AR if:
- the activities for which it is exempt are limited to insurance distribution activities only; and
- its principal purpose is to carry on activities other than insurance distribution activities.
Typical examples include motor retailers or removal firms.
Q: What is an 'introducer' Appointed Representative (AR)?
A: An introducer appointed representative is an AR appointed by a firm whose scope of appointment is limited to:
- effecting introductions; and
- distributing non-real time financial promotions.
Please consult the Handbook Glossary[3].