Fca Authorised Representative Agreement

An FCA Authorised Representative Agreement is a legally binding contract between an FCA-registered firm and a third-party individual or entity that is acting on behalf of the firm. This agreement allows the authorised representative to carry out regulated activities on behalf of the firm, subject to certain conditions and restrictions.

In order to become an authorised representative, the individual or entity must first be approved by the FCA. The FCA will assess the applicant’s suitability and competence to carry out the activities in question and will also require the applicant to undergo regular training and development.

Once approved, the authorised representative will be able to carry out certain regulated activities on behalf of the firm, such as advising clients on investments or arranging deals in investments. However, they will be subject to strict conditions and restrictions, including the need to comply with all relevant FCA rules and regulations.

One key benefit of using an authorised representative is that it allows firms to access new markets and clients without having to go through the process of obtaining their own FCA registration. This can be particularly useful for smaller firms or start-ups who may not have the resources or expertise to become directly authorised.

However, it is important to note that the firm remains ultimately responsible for the activities carried out by the authorised representative. This means that they must ensure that the representative is complying with all relevant regulations and that they are providing appropriate training and supervision.

In addition, firms should ensure that they have a robust FCA Authorised Representative Agreement in place that clearly sets out the rights, responsibilities and obligations of both parties. This agreement should cover issues such as indemnity, liability, termination and confidentiality.

Overall, an FCA Authorised Representative Agreement can be a useful tool for firms looking to expand their business and access new markets. However, it is important for both the firm and the authorised representative to fully understand their responsibilities and obligations and to have a clear and comprehensive agreement in place to govern their relationship.