The FCA has published a new webpage which sets out expectations for firms with overseas appointed representatives (OARs). In particular, principal firms should consider whether customers dealing with an OAR will receive equivalent services, protections and outcomes as those dealing with a UK-based AR.
The webpage also includes some practical considerations for principals with OARs:
- when completing the annual self-assessment AR document, firms should consider the additional risks of having OARs when assessing their controls and resources;
- the application of the approved persons regime to OARs (including individuals within OARs performing a customer function) depends on, among other things, whether the activities are carried on from an establishment in the UK and how long individuals performing a customer function spend in the UK annually;
- firms must also ensure that AR agreements require any OARs to comply with relevant FCA rules.
The FCA also reminds firms that if they cannot adequately monitor the activities of an OAR, they should consider terminating the agreement.