What is a Regulatory Umbrella?

Under the Financial Services and Markets Act, no person may carry on a regulated activity in the UK unless he is an authorized or exempt person under FSMA. However, a person may be exempt if he is an Appointed Representative ("AR") of an authorized firm ("Principal"). An AR is allowed to carry out regulated activities under a contract by which the Principal accepts responsibility for the regulated activities carried out by its ARs. This is called a Regulatory Umbrella.

Umbrella Principals provide access to regulated activities in financial markets. A team of dedicated compliance experts ensures time-effective dealing with the FCA setup, ongoing compliance monitoring and dealing with adhoc compliance issues.

What are the benefits of a Regulatory Umbrella?

ARs are able to undertake regulated activities without the costly and timely process of applying to the FCA to be regulated directly. An AR will have direct access to compliance experts within a dedicated compliance infrastructure. This enables ARs to continue with their business with minimal distribution but comfortable in the knowledge that they are operating in accordance with the regulatory framework of the FCA.