Frequently asked questions
To help you here are the subjects we are regularly asked and links to further information.
The FSA Register
Appointed representatives' process
Forms
Service standards
Finance
Tied Agents (effective from 1 November 2007)
The FSA Register
Why doesn't the register reflect that an appointed representative is an IAR with one principal when it has a full status with another principal?
Currently, the FSA Register functionality can only display the relationship to one principal firm. As an appointed representative can undertake more activities than an introducer only appointed representative, we will use the appointed representative status. However, all appointed representatives can only undertake activities for which they have entered into a contract with an authorised firm.
Appointed representatives' process
Where can the appointed representative rules be found?
In SUP 12 of the FSA's Handbook.
See also the leaflet Becoming an appointed representative.
What is the process for becoming an appointed representative?
In order to become an appointed representative it is necessary to approach an authorised firm. They will carry out the necessary vetting and if they are prepared to enter into an appointed representative contract with you will notify the FSA and apply for approved persons status as appropriate.
Can an appointed representative also be directly authorised at the same time?
No.
Why doesn't a firm receive a letter when an appointed representative is registered?
Confirmation letters are not issued for appointed representative notification. If the firm wishes to check that a notification has been actioned, please check the FSA Register.
Why do approved persons approval letters not contain appointed representative firm names?
The two matters are distinct. A firm must notify the FSA of the appointment of an appointed representative within ten days of the appointment. However, it must apply for prior approval of a person to perform a controlled function.
What are the notification requirements for an appointed representative?
A firm which has appointed an appointed representative must notify the FSA of the appointment within ten days after commencement of activities (see SUP 12.7.1R).
Does an introducer appointed representative require controlled functions?
The approved person regime does not apply to an introducer appointed representative.
Which controlled functions are applicable to an appointed representative?
Where the appointed representative will be undertaking designated investment business and/or home finance and/or insurance mediation the governing functions and customer function (effective from 1 November 2007) will apply. However, where the appointed representative is undertaking home finance and/or insurance mediation only the governing function(s) will apply.
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Does a sole trader appointed representative require approved persons status?
If the sole trader is undertaking designated investment business (and/or home finance and/or insurance mediation) the customer function (effective from 1 November 2007) would apply. Where the sole trader is undertaking only home finance and/or insurance mediation, controlled functions would not apply.
What is an appointed representative network?
The FSA Handbook definition of a 'network' is a firm which has five or more appointed representatives (not counting introducer appointed representatives) or whose appointed representatives, not counting introducer appointed representatives (and being fewer than five) have, between them, 26 or more representatives. It does not include a product provider; a firm which markets the packaged products of a product provider which is in the same group as the firm and which does so other than by selecting products from the whole market; an insurer in relation to a non-investment insurance contract; or a mortgage lender.
What activities can an appointed representative perform?
An appointed representative can only carry out activities within the principals scope of permission and for which they have entered into a contract with their principal.
If an appointed representative is only introducing general insurance business, which activity should be ticked on the add an appointed representative form?
Currently, the FSA Register functionality can only display the relationship to one principal firm. As an appointed representative can undertake more activities than an introducer only appointed representative we indicate the appointed representative status. However, an appointed representative can undertake, as such, only those activities for which it has entered into a contract with an authorised firm.
Forms
Where can the appointed representative forms be found?
On the FSA website or click on the forms to the left of the approved persons/appointed representatives home page.
If a firm is applying for an appointed representative who requires a controlled function, should the approved persons form be submitted at the same time?
Yes please note, it is the authorised firm's responsibility to ensure that the appropriate approved person application is submitted. The FSA will not, as a matter of course, remind firms of these requirements. If it is subsequently discovered that an individual is operating without the appropriate approval, the FSA may take action against the authorised firm.
Service standards
What is the FSA service standard for processing an appointed representative form?
5 working days for a routine, complete form.
Does the FSA publish information on whether it meets the service standards?
Details of the FSA's performance against its service standard are published on the FSA website.
Finance
Does the FSA charge a fee for processing appointed representative forms?
No.
Tied Agents (effective from 1 November 2007)
What is a tied agent?
For guidance on what a tied agent is, see Q. 11 of PERG 13 and SUP 12.2.16G notification requirements.
What are the notification requirements of a tied agent?
A firm which intends to appoint a tied agent must notify the FSA before the appointment (see SUP 12.7.1R).
Good repute and appropriate knowledge of a tied agent. Does the firm need to do anything else?
It must be ensured that a tied agent appropriate knowledge, to communicate accurately relevant information to the client (see SUP 12.4.2AR).
I am a UK tied agent conducting business solely in the UK. My principal firm has submitted an application, when can I commence activities?
You can commence activities once we advise your Principal that you have been entered on the FSA Register of tied agents and they give you authority to commence. The notification for a routine, complete, form will be processed within 5 days, our voluntary service standard.
I am a UK tied agent undertaking business in an EEA state through the passport of my principal who has now submitted a notification. When can I commence activities?
You can only start business when:
- your registration has been confirmed to your principal and they have given you authority to commence; and
- your Principal's passport notification has been made to the relevant home state(s).
The service level agreement for this process is one month from the date of receipt of your Principal’s notification.
I am not a tied agent and I am not undertaking insurance mediation activities. Do I need to answer question 13 of the add an appointed representative form?
Yes. You should tick 'no' to Q 13(1) and (2).