Key Things You Should Know about Appointed Representative Services

24th April 2018 1632 - Blog Posts

Appointed representative services allow firms to carry out regulated financial activities, in the UK and the EU, without going through the rigorous process of obtaining direct authorization from the Financial Conduct Authority.

Becoming authorised as an appointed representative can be a good choice for venture capital firms, hedge funds, private equity firms, family firms and in fact any financial firm that wants a quick route to market and the freedom to concentrate on their own core business activities with the peace of mind that compliance is being strictly adhered to.

What are appointed representative services?

Put simply, an appointed representative is a firm or person who runs regulated activities or acts as an agent for a firm which has obtained direct authorization from the FCA – in this case Lawson Conner. We are a leading provider of appointed representative services, with around 300 entities regulated in the last five years.

A quicker route to market

Obtaining direct authorization from the FCA can take up to 12 months to complete, and it involves a significant amount of paperwork and due diligence, so becoming an appointed representative provides an easy, and much faster, alternative option for launching your business – you could be up and running within a few weeks.

Direct authorization is often costly and can involve taking on additional staff with specific compliance expertise, so the appointed representative route is likely to save money as well as time. Speed to market is vital for regulated businesses but maintaining compliance and staying up-to-date with regulatory requirements is equally important, so becoming an appointed representative can provide a good balance between the two priorities.

Ongoing governance and oversight

Regulatory demands and reporting can place an enormous burden on financial firms but as an appointed representative ongoing compliance and governance falls to us. We will set up a framework, which includes monitoring plans, compliance policies, procedures and governance. We will also take responsibility for regulatory reporting and hold relevant capital adequacy.

At Lawson Conner, we have extensive experience at providing compliance for big name clients based all over the world, so our direct authorization services offer peace of mind that every angle will be considered when regulating your business. Red tape will be considerably reduced so that you are free to focus on building and strengthening the key profitable elements of your company.

Our state-of the art technology platform makes the onboarding and continuous monitoring process particularly efficient and offers transparency to all stakeholders.

Conducting regulated activities in Europe

Appointed representative services are particularly useful for firms that want to carry out regulated activities in Europe, especially in the current backdrop of post-Brexit uncertainty. For our appointed representatives, we can provide MiFID passport services, to operate in Europe as a tied agent, which works well if you want to distribute UCITS funds or operate in the primary finance markets across the European Economic Area. In the current regulatory climate, there is increasing uncertainty about passporting rights in the case of a hard Brexit, but becoming an appointed representative will negate that risk, providing uninterrupted service across all European jurisdictions.

Using Lawson Conner’s appointed representative services saves time and money, offers a quick and efficient route to market, cushions against post-Brexit uncertainty and offers unparalleled access to high-quality compliance expertise. To find out how we could help you launch in just a few weeks, talk to us today.