Directly Approved Vs Appointed Representative?

You might consider there to be significant advantages to operating as an AR, at least in the short term until you are able to gauge how successful your insurance business will be, or whether it suits your lifestyle. 

Many of our clients join us as a temporary solution to learn more about regulation and compliance, whilst building their businesses and insurer contacts to a point where they are comfortable to become directly authorised. When the AR feels that its time for direct authorisation – we offer complimentary guidance and support. And of course, the client bank you have worked so hard to build are always yours – no strings attached.  

Please click here to see how much your AR hosting fees would be each year and how much you could save. 

FCA Direct Approval – Things to consider:

At xBroking, we always help our partners in becoming directly authorised by the FCA as and when they feel the time is right. Often, our partners stay with us for years on end as the benefit of becoming directly authorised doesn’t always outweigh the Appointed Representative model. Here are some regulatory, compliance and financial considerations to think about when becoming directly approved;

• Professional Indemnity insurance 
• Application process can take more than 8 months
• Setting up new agencies and TOBAs with insurers 
• Client money reconciliations and IBA accounts
• Annually audited accounts by an independent auditor
• Management Accounts (where required)
• Compliance Framework
• Share Capital requirements as per FCA requirements
• Solvency Margins as per FCA requirements
• Dedicated personnel for compliance and regulatory functions
• FSCS annual fees
• Annual FCA fees
• FCA GABRIEL reporting (twice annually)
• Systems costs and licencing