Compliance Corner: FCA Refuses To Authorise Regulatory Consultancy
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Financial Conduct Authority
The Financial Conduct Authority has refused to authorise regulatory consultancy firm Alexander Jon Compliance Consulting Limited, saying the business could not demonstrate that it had the skills, experience or staff to oversee Authorised Representatives (ARs).
This is a service which would have allowed AJCC to take responsibility for firms carrying out regulated activities without being directly FCA approved – the agents for which are known as Appointed Representatives.
The FCA said the firm was unable to describe a viable or sustainable business model.
“AJCC was also unable to explain how its ARs would assess that products or services were appropriate for consumers, or to demonstrate that it would have direct responsibility for the conduct and compliance of its ARs. The FCA refused the application to protect consumers from the risk of using a poorly overseen investment business,” it said in a statement.
The watchdog said it had reminded those providing regulatory hosting services that they are accountable for the actions of their ARs and need to have the ability and skills to properly supervise them.
The FCA has previously highlighted common concerns regarding the oversight of ARs and is committed to improving the standards in this sector as part of its 2022-2025 Strategy.