FCA Refuses to Authorise AJCC to Provide Regulatory Hosting Services

The Financial Conduct Authority (FCA) announced that it has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services.

This is a service which would have allowed AJCC to take responsibility for firms carrying out regulated activities without being directly FCA approved, known as Appointed Representatives (ARs).

AJCC could not demonstrate that it had the skills, experience or the staff to oversee ARs. It was unable to describe a viable or sustainable business model. AJCC was also unable to explain how its ARs would assess that products or services were appropriate for consumers, or to demonstrate that it would have direct responsibility for the conduct and compliance of its ARs.

The FCA refused the application to protect consumers from the risk of using a poorly overseen investment business. The FCA is also reminding those providing regulatory hosting services that they are accountable for the actions of their ARs and need to have the ability and skill to properly supervise them.

Emily Shepperd, Executive Director of Authorisations at the FCA, said: “It is vital those who are seeking the FCA’s authorisation meet our high standards. If this is not the case, we will refuse their applications in the interests of consumers and other businesses.”