FCA refuses application for consultancy acting as regulatory host for ARs

The Financial Conduct Authority (FCA) has refused authorisation to Alexander Jon Compliance Consulting Ltd (AJCC) to provide regulatory hosting services which would have allowed it to oversee Appointed Representatives (ARs) for investment businesses.   

The FCA said in its Final Notice that it was not satisfied that the compliance consultancy, which has one director and no employees, had the appropriate non-financial resources for the regulated activities it had sought permission to carry out. Namely, that AJCC could not demonstrate that it had the skills, experience or the staff necessary to oversee and manage an investment business as Principal.  

While the FCA’s action is not in the general insurance sector, it is noteworthy for BIBA members as it is evidence of the regulator’s commitment to being tougher on firms looking to operate as a principal particularly when looking to operate as a regulatory host.  The FCA set out its plans for strengthening and improving the Appointed Representatives regime in Consultation Paper (CP21/34).  This commitment was reiterated in the FCA’s Strategy for 2022-2025.  

Members are reminded that the FCA introduced new charges for having appointed representatives for the 2022/23 financial year, which it is using to fund work on firms with, or applying to have ARs. As part of its proposals for 2023/24 regulatory fees (see CP22/7), the levy per AR will increase from £250 to £287 and the levy per Introducer AR (IAR) will increase from £75 to £86. 

BIBA members’ compliance and regulation queries should be directed to:?compliance@biba.org.uk?quoting their membership number. 

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