The Appointed Representative Regime – creating positive change.

With the AR regime in the news, it is interesting to look at its many strengths.

The AR regime is very common in the FinTech space, where technologists often lack the operational experience to create a traditional Financial Services firm and the AR to market route is so popular.

Becoming an appointed representative is a well-established, route to market for many such technology firms and a diverse range of startups seeking to create positive change. Prominent former examples include Freetrade.co which has enabled 500,000 and counting UK residents to benefit from zero-cost access to the equity market. Freetrade used an AR agreement as a stepping-stone to full authorisation and now European expansion. New entrants seeking to benefit from the AR regime include, and seeking to aid millions more, include Light Year Financial (Founded and backed by the incredible team at Transferwise) and Tulipshare. Tulipshare are changing what it means to be a small investor, creating a new engaged investor base and campaigning for change at the world’s biggest companies.

Alongside – niche brokers like Winvesta these firms are driving down the cost of, and widening access to, investments and a lifetime of saving.

We’re very proud to have these ARs on the RiskSave Appointed Representative Platform.

What is an appointed representative.

To carry out financial services regulated by the FCA in the United Kingdom a firm must be ‘authorised’ or ‘exempt’. Where well known examples of exemptions include Appointed Representatives (ARs) and Recognised Investment Exchanges (RIE). An appointed representative (AR) is a firm or person who runs regulated activities and acts as an agent for a firm directly authorised by the FCA. This firm is known as the ARs 'principal'. There must be a written contract between the principal and the AR documenting the arrangement. The Principal will then take responsibility for their agents’ (the ARs) actions.

A route to direct authorisation

Direct authorisation is usually more costly in the first instance and can involve taking on additional staff with extensive compliance expertise, so joining an AR network is likely to save money as well as time. Being first to market is important for many entrepreneurs but regulatory compliance and understanding FCA requirements is at least as important. However many startups will use an Appointed Representative network to gain experience and understand their marketplace while working on a direct application. With an AR seeking (typically) to become directly authorised 1-2 years after the initial launch and product testing.

.About RiskSave

Founded in 2015, RiskSave is an award-winning provider of appointed representative services and compliance solutions. Our AR network benefits from a state-of-the-art technology platform that reduces compliance risks and can accelerate the growth of asset managers and FinTech.  At RiskSave every appointed representative is supported by a holder of a Diploma in Compliance and an MSc in Finance.

Using RiskSave’s appointed representative services is not just a quick and efficient route to market, it’s choosing a partner who can scale with you and help you focus on your core proposition.