The Financial Conduct Authority (FCA) has today announced proposals to make changes to its appointed representative regime (AR) – a scheme which allowed the now collapsed Greensill to run in the UK without a license to conduct millions of pounds’ worth of business.
The AR regime, which was first conceived four decades ago, lets an unauthorised company conduct some regulated activities even if it doesn’t have a licence, so long as the company is supervised by an authorised firm.
It was originally aimed at sole traders and small service firms.
“The appointed representative model helps bring choices to consumers,” said FCA executive director for consumers and competition Sheldon Mills. “But,” he warned, “the level of harm we are currently seeing is too high. There are real risks of consumers being misled and mis-sold with little scope for recourse.”