Appointed Representatives: Onboarding and Monitoring.
6.1 Background
An appointed representative (AR) is a firm or person who completes regulated activities and acts as an agent for a firm which is directly authorised by the FCA. This ‘parent’ is known as the principal firm. The AR may only carry out activities it is permitted to carry out and for which the principal firm has been authorised.
The principal firm is responsible for the AR’s acts and omissions. Our senior management are aware that the activities of our ARs form an integral part of our business and as such require active management and oversight. Responsibility for appointing, controlling, and monitoring all ARs lies with ShareIn as the principal firm and its senior management.
Because of this over-arching responsibility, we are required to establish and maintain effective systems and controls to demonstrate that our ARs comply at all times with the relevant regulatory requirements and standards. The FCA views ARs as part of our business and it considers any activities carried out by them or their approved persons as being carried out by us. We therefore have in place robust and appropriate procedures, systems, and controls for appointing ARs, conducting business and ending the relationship. Checks completed on Appointed Representatives during onboarding include, but are not limited to, Solvency Assessments, and Product Viability Assessments. Specific details of the arrangements ShareIn has in place to assess and monitor ARs throughout the lifecycle of the relationship can be found in the ShareIn Onboarding, Monitoring and Due Diligence Policy.
An 'approved person' is an individual approved by the FCA to do one or more activities - what are called 'controlled functions' - for an authorised firm. An Approved Person must know and meet the FCA’s regulatory requirements, as well as understand how they are applied.
The ShareIn Onboarding, Monitoring and Due Diligence Policy discusses this in detail.
6.2 Real-time, daily approvals and continuous oversight
ShareIn provides the investment platform technology for all ARs, as such ShareIn have real-time insights on all AR investment activity. No investment activity can be completed without ShareIn compliance team being aware of the activity. The platform handles record keeping, onboarding investors, payments etc.
6.3 Regular Monitoring
In addition to the daily monitoring activities ShareIn has created an appropriate and rigorous compliance monitoring programme. This aims to review key areas of our regulatory obligations to ensure adherence to those obligations and that the possibility of investor loss/detriment is detected at the earliest opportunity.
Monitoring, once conducted, results in a report being produced by the compliance officer and presented to the ShareIn Board. This report sets out details of results against monitoring reviews, any required remedial action, and seeks to allocate timescales and responsibilities for achievement of the standards. Where remedial action is warranted, the performance and outcome of the remedial action is reviewed for satisfactory operation by the compliance team and reported back to Board.
The ShareIn Compliance Calendar details on a monthly basis, the key Compliance areas which should be checked according to the risks posed. In addition we have implemented a calendar specific to each AR to record the reviews completed each month on AR activities. The ShareIn Onboarding, Monitoring and Due Diligence Policy discusses the Monitoring programme in detail.
6.4 Offboarding
During the onboarding process or at any point during the relationship with the AR ShareIn or the AR may decide to cease the relationship and offboarding must be completed. ShareIn have documented actions which will be completed during this time, more detail can be found in the ShareIn On-boarding, Monitoring and Due Diligence Policy.