complaints and regulatory intervention.
Understanding exactly how your AR presents itself to customers has become just as important as understanding the business it writes, hence the need for continuous information, robust controls, and clear monitoring of customer-facing materials including signage, disclosure documents, websites, and customer communications. It is important that the customer is presented with clear information in respect of which activities are regulated and which are not.
It is also important to ensure that the principal firm is aware of what activities are taking place and that these are aligned to the firm’ s risk appetite, consistent with expectations as per business plan and the agreed scope confirmed within the AR agreement.
" If the FCA contacted us today and requested evidence of our AR oversight arrangements, how confident would we be?"
Not just that the policies exist, not just that annual reviews have been completed, but confident that you could clearly demonstrate how you understand your ARs, monitor their activities, identify risks, and take action when necessary.
If the answer isn ' t an immediate and confident " yes ", now may be the right time to take another look at your AR oversight arrangements. While ARs can be an effective route to growth, the responsibility and regulatory risk will always remain with the principal firm.
Perhaps the easiest way to assess your AR framework is to ask a simple question:
Want to know more?
The Simplybiz Compliance team recently presented a Compliance Clinic focusing on FCA expectations surrounding ARs, if you missed this broadcast it will be available soon, so keep an eye out. You can book on to the next Compliance Clinic right now below.
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September 2026 | 21