FCA umbrella providers Lawson Connor, Linear Investment, Capital Systematics and Hutchinson Lilley are behind the venture, and will work together to ensure both compliance and regulatory standards are both met and being improved.
Firms that are exempt from carrying out financial service activity can enter into agreements with an umbrella firm, also known as the principle firm, becoming an appointed representative (AR) which enables them to undertake regulated activities with the principle firm assuming responsibility for its AR.
Mike Downey, head of regulatory umbrella services at Hutchinson Lilley Investments, said: “Each regulatory umbrella firm takes a different approach to entering into relationships with ARs so the purpose of the association is to provide a uniform range of standards for appointed representatives, to ensure these agreements comply fully with current regulatory standards and to make both the ARs and the principle firm aware of its obligations.
“Of course in time we hope in time more firms like ours will become members of the association.”
Regulation remains as hot a topic as ever; find out more about investment manager opinion on current topics here.
