FCA warns lack of AR monitoring puts customers at risk
Regulator issues alert to principals after finding that some fail to undertake sufficient due diligence on ARs.
The Financial Conduct Authroity (FCA) has warned that principal firms aren’t undertaking sufficient due diligence on their appointed representatives, highlighting that there is a risk that customers suffer financial harm as a result.
The regulator issued an alert today (3 November) stating it had found that some principals are not monitoring the type, volume and source of business being submitted by its ARs.
The FCA stated: “A Principal needs to have a well-structured monitoring process in
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