The FSA warns brokers considering becoming ARs to check out their principal agents
Now is the time for brokers to decide if they intend to become directly authorised or appointed representatives (ARs).Director of the FSA's high street firms division Sarah Wilson said that now brokers can register to receive an application pack, it is time for them to decide which path they will take.But Wilson warned brokers considering becoming ARs to remember that many firms touting themselves as principal agents are not yet authorised themselves. She said that brokers looking to become ARs should have a contingency plan in case their principals fail the authorisation process. Wilson said brokers wanting to be directly regulated should look at the sample application forms on the FSA's website in order to begin planning.Brokers do not have to be FSA compliant when they submit their application, but must commit to be compliant by 14 January 2005. This includes having a written compliance plan, which the FSA may ask to see.The FSA is currently considering how it will give brokers who are GISC compliant "due credit". It will set out its criteria for due credit in the next few weeks.
The Application Process