Selecting the Right Path for Your Business

In the UK, nearly all financial services must be authorised by the Financial Conduct Authority (FCA). There are two primary options for firms to gain this authorisation: they can either apply for direct authorisation or opt to become an Appointed Representative (AR). An AR is a firm or individual who carries out a limited range of regulated activities and operates as an agent for a firm that is directly authorised by the FCA, known as the AR’s Principal.

There are various distinctions between being directly authorised and acting as an AR, and some businesses may find that one route is better suited to their needs than the other.

This factsheet outlines the key differences between these two options and highlights the important factors to consider when deciding whether to seek full authorisation or to become an AR.