Staying Ahead: FCA's Reminder on New Appointed Representative Reporting Requirements

Introduction

In the world of financial regulation, transparency and accurate data are paramount. As part of its ongoing commitment to promoting a secure and well-functioning financial landscape, the Financial Conduct Authority (FCA) is introducing new reporting requirements for principal firms with Appointed Representatives (ARs). Effective from December 1, 2023, these requirements reflect the FCA's strategic emphasis on utilizing data to minimize harm, enhance oversight, and uphold market integrity. This blog will delve into the essential details of the FCA's new AR reporting requirements, empowering principal firms to navigate these changes seamlessly.

Data-Driven Harm Reduction

Recognizing that comprehensive data analysis is a linchpin in the prevention of harm within the financial industry, the FCA is ramping up its reporting requirements for principal firms and their ARs. By ensuring that relevant data is regularly submitted, the FCA aims to fortify its supervisory capacity, enabling early intervention to prevent potential issues from escalating.

What Information to Submit

1. AR Complaints and Revenue: Principal firms are now mandated to submit AR complaints and revenue data annually through the REP025 form in RegData. This form, tailored to gather this specific data, will be seamlessly integrated into your RegData reporting schedule by December 1, 2023. It is imperative to note that this submission should align with your Accounting Reference Date (ARD) and must be made within 60 business days of your ARD.

2. Firm Details Attestation: Principal firms must annually review, amend, and validate their details using the Connect platform. Starting December 2023, you will also need to confirm the details of your ARs and IARs within 60 business days of your ARD, reinforcing the importance of accurate and up-to-date information.

3. New ARs and Activity Changes: Communication is pivotal in maintaining an accurate regulatory landscape. Principal firms are required to inform the FCA at least 30 calendar days before appointing a new AR. Additionally, if your AR's activities undergo changes, these modifications must be communicated to the FCA at least 10 days prior to implementation.

4. Ad Hoc Data Requests: The FCA's supervisory work may entail ad hoc data requests, pursuant to S165 rules, to enhance oversight and enforcement. These requests serve as a testament to the FCA's commitment to proactive and informed regulation.

Navigating the Transition

Adapting to regulatory changes might seem daunting, but the FCA is committed to facilitating a seamless transition. By leveraging existing reporting systems like RegData and Connect, the FCA ensures that the tools are in place for principal firms to adhere to the new requirements with ease.

Conclusion

The FCA's decision to enhance reporting requirements for principal firms with ARs underscores its dedication to proactive regulation and harm prevention. Through comprehensive data collection, the FCA aims to bolster its supervisory capabilities, ensuring the financial ecosystem remains resilient, transparent, and protective of consumer interests.

As we approach December 1, 2023, principal firms are encouraged to familiarize themselves with these new reporting mandates and embrace the opportunity to contribute to a more secure and transparent financial landscape. By staying informed and compliant, principal firms are playing a vital role in shaping a more resilient and trustworthy financial future.