FCA Exemption

All firms that are engaged in regulated activities need to be authorised by the PRA and FCA (dual authorisation) or regulated by the FCA only for conduct purposes or exemption. Exemption can be achieved by becoming an appointed representative (AR) of an authorised firm who will then become your “principal”. It is your principal firm that is responsible and accountable for your compliant behaviour. The opportunity of becoming an Appointed Representative is only available for certain sectors and is a uniquely British concept within regulatory activities. Appointed representatives can be in the following sectors:-

Life and pension intermediaries

A very large number of smaller firms join principle firms and once there are more than 5 firms then this is called a “network”. In very broad terms, approximately one third of individuals are members of networks in this sector as this least individual free to work with our clients and the network will take care of relationships with product providers, and regulatory matters. As a consultancy we have advised many networks, and we will be pleased to introduce firms to network. If this is a suitable route. For further information please contact us on the contact points listed below.

Home finance intermediaries

Very many home finance intermediaries are relatively small firms, 5 persons or less and frequently a sole trader, where it is entirely suitable for them to become an Appointed Representative of Authorised firms in this sector. Our consultancy has worked with many networks of home finance intermediaries and if we can be of service to either of these networks or intermediaries who want to be introduced, please contact us on the numbers listed below.

General insurance brokers

Very many commercial firms would wish to arrange general insurance contracts for their clients as this is entirely complements their main activity. If general insurance policies are introduced as an ancillary activity then these firms are called a secondary intermediary and it is entirely appropriate for them to become an Appointed Representative. A typical example would be motor dealers will help their clients arrange insurance prior to taking a vehicle off-site, which is very good sense for both the new owner and the dealer. Many motor dealers are directly authorised, particularly the larger franchises but many independent dealers have chosen the Appointed Representative route.

As a consultancy we are delighted to provide full consultancy services to networks and if firms wish to be introduced to a network and then we are happy to make and arrange introductions, so the applicant firm can make a choice.

Our sister company Broadgate Consortium Limited is a principal firm specifically for general insurance intermediaries that excel in a particular area of business, engineering, marine management retailers of expensive equipment etc and not only do we provide full regulatory exemption with a very empathic monitoring and supervisory regime. We can also assist firms in designing and developing specialist insurance products that are quite unique to their own business. For further information please contact us on the number below.

Regulatory intervention

The FCA are extremely interventionist, particularly if they detect any element of consumer detriment. They will inevitably write to the firm of their concerns and they would usually provide the firm with the opportunity to correct their errors. The regulator will make it extremely clear that this needs to be done urgently and in many cases a firm may be asked to suspend their regulatory activity until such time as they have completed full corrective measures. Our consultancy will be pleased to work with your firm to respond to such a request, we are extremely proud of the fact that of their 3,700+ clients over the last 18 years, none of them actually faced regulatory criticism or censor even when they have had a warning and demand for corrective activity.

As a consultancy we can work with you from authorisation throughout your career with regulated activities and if the regulator should intervene, work with you until we have the best possible resolution.