Monday, June 6, 2022
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FCA rejects appointed rep ‘internet hosting’ plan from agency

The FCA has refused authorisation to regulatory consultancy agency Alexander Jon Compliance Consulting Restricted (AJCC) which deliberate to offer regulatory ‘internet hosting’ providers.

The plan would have allowed AJCC to authorise Appointed Reps (ARs) to hold out regulated actions with out the ARs being straight FCA accredited.

This may have allowed AJCC to ‘host’ Appointed Representatives (ARs).

The ‘regulatory internet hosting’ mannequin makes use of the FCA’s Appointed Consultant (AR) regime. It implies that quite than carrying on any substantive aspect of a regulated exercise itself, the regulated enterprise of the authorised agency makes its permissions obtainable to be used by its ARs. This service to the ARs is often marketed as a further service alongside different compliance help providers, the FCA stated.

The watchdog stated that AJCC couldn’t reveal that it had the abilities, expertise or the workers to supervise ARs. It was additionally unable to explain a viable or sustainable enterprise mannequin. 

AJCC was unable to elucidate how its ARs would assess that services or products have been applicable for shoppers, or to reveal that it might have direct accountability for the conduct and compliance of its ARs.

The FCA refused the applying to “defend shoppers from the chance of utilizing a poorly overseen funding enterprise.” 

The FCA has additionally reminded these offering ‘regulatory internet hosting’ providers that they’re accountable for the actions of their ARs and must have the power and talent to correctly supervise them.

The FCA has beforehand highlighted frequent points with oversight of ARs and dedicated to enhancing the requirements on this sector as a part of its 2022-2025 Technique, the regulator stated.

Emily Shepperd, government director of authorisations on the FCA, stated:”It’s important those that are in search of the FCA’s authorisation meet our excessive requirements. If this isn’t the case, we are going to refuse their purposes within the pursuits of shoppers and different companies.”

Alexander Jon Compliance Consulting has been requested for remark.



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