What is an appointed representative

An Appointed Representative (AR) is a company which carries out regulated activities although they are not directly authorised by the FCA. Instead, they receive their authority from their FCA authorised intermediary or an insurer.

In such a situation, the intermediary or the insurer will be deemed to be the principal and will have full responsibility for ensuring that the AR complies with the FCA’s regulations as well as ensuring that they also comply with their own regulatory obligations.

We see the AR’s position as a broker within a broker whereby all the actions, decisions and compliances are handled in a manner, no different to that of the principal, or as if the AR had actually acquired its own full FCA authority.

At the time of writing (September 2016), the Financial Conduct Authority carried out a review of all of these processes. As a result of their investigation they have removed a number of ARs’ trading authorities. In short, they felt that the principal firm had failed to adequately supervise them or in the worse cases, failed to understand their business structure and product ranges.

It has been viewed for some time, by many, that being an Appointed Representative was a short cut method to becoming an insurance broker without the same compliance hassle. However, this could not be further from the position sought by the FCA. As such, every AR in the country should greet ‘soft touch’ regulations with suspicion rather than welcome them, as failures of the principal will now have direct consequences on the AR.

At present there are in excess of 20,000 AR firms, with many lacking even the most basic level of supervision requirement to maintain a compliant business.



The Essential Network is the new and exciting way for you to become a General Insurance Appointed Representative.

This shared equity model has been created to provide the perfect blend of business autonomy and supervision.

Every step of the process is tailored to your specific needs to allow the business to flourish all the way to its natural conclusion; full authorisation with the Financial Conduct Authority (FCA).

You will be in safe hands knowing that you are working with industry people that both fully understand your requirements and can help you navigate the potential pitfalls.

speach marks

Having set up a new Insurance business, cbs have very quicly established itself in the local marketplace. This would not have been possible without the continued support of Jonathan and his vast knowledge and experience.

Jay Daya, Director

CBS Logo
speach marks

Working with ERS is one of the best business decisions we have ever made, the help and support we continually receive from them is priceless.

Matt, Sales Director

CBS Logo
speach marks

Having made the decision to go out on my own as an AR of Essential Risk Solutions, which has proven to be the best decision I have ever made professionally. I would have no hesitation in recommending Jonathan and his successful business concept, to anyone contemplating making this move.

Laura Styring , Director

LMS Insurance






CALL 0333 3443517

Essential Network Articles