Appointed representatives and consumer credit firms

When you can't be an AR

You can't be an AR for a regulated activity if:

• you don't have a contract with a principal firm covering its regulated business
• your principal firm hasn't accepted responsibility in writing for the regulated activity you carry out
• you operate a credit reference agency
• you provide credit (unless the credit is free of interest and any other charges)
• you're authorised for another activity

When you can be an AR

The exception to the above is if your firm has limited permission for certain credit activities.

This may mean that you're able to be an AR for other regulated activities – for example, a motor dealer with limited permission to carry on credit broking can also be an AR insurance intermediary.

As an AR you must allow your principal firm access to your:

• staff
• premises, and
• records

so the principal can carry out the necessary oversight and monitoring of your business.

It's important you maintain accurate records because the principal needs to to report this information to us on an ongoing basis.

Agents

If your firm only wants to act as an agent of an authorised firm, you may not need authorisation.

It depends on whether you're acting on behalf of a single authorised firm, in their name, and not conducting your own business.

It can also depend on how much control the firm has over you, how much you're integrated into their business and whether you deal with the customers in your own right. This will usually apply only in relation to an individual.

For more guidance, refer to our:

• Perimeter Guidance – see sections 2.3.5G to 2.3.11G
• Consumer Credit Sourcebook – CONC 14 sets out the requirements on firms appointing an individual as an agent