A firm that undertakes regulated activities as an agent for an authorised person and is therefore exempt from authorisation. An AR can act for one principal (single principal model) for all regulated business. An AR with multiple principals is allowed only one principal for their investment business, both packaged and non-packaged policies, in regard to business with private customers (or equivalent). In regard to non-investment insurance (general insurance and pure protection) ARS are not restricted as to number of principals (i.e. product providers, intermediary or network). The principal takes responsibility for the AR’s compliance with FSA rules. Multiple principals work together on issues potentially damaging to clients via a multiple principal agreement with one taking the ‘lead’ for customer complaints. When an individual becomes an AR in regard to investment products he also becomes a financial adviser. See APPOINTED PERSON REGULATIONS; APPOINTED REPRESENTATIVE ACTIVITIES; INTRODUCER APPOINTED REPRESENTATIVES.

ARs are permitted to carry on the following regulated activities: arranging (bringing about) deals in relevant investments, including general insurance and pure protection; making arrangements with a view to the foregoing deals; giving advice on such deals; agreeing to carry on any of the regulated activities. General insurance ARs may also deal as agents in relation to a contract of general insurance and assist in the performance or administration of such a contract.

Full title: The Financial Services and Markets Act 2000 (Appointed Representatives) Regulations 2001 (SI 2001/ 1217). They describe the business for which appointed representatives are exempt and set out the requirements that apply to contracts between authorised persons and appointed representative (www.hmso.gov.uk/si/si/ 2001/20011217.htm)

A life annuity under which the annuity is payable up to the date of death of the annuitant, i.e. payment is made on a pro rata basis for the period between the last regular payment and the date of death. Under an annuity curtate, no account is taken of this period as the annuity terminates on the last payment date preceding death.

The FSA controlled function of acting in the capacity of director or senior manager responsible for either or both the apportionment function and the oversight function. The function entails the allocation of significant responsibilities among senior managers and overseeing the establishment and maintenance of the firm’s systems and controls. Where there is a chief executive he/she must be one of the individuals appointed unless the functions are allocated to someone more senior.

In cargo insurances different species may be insured under a single valuation. In a partial loss of cargo the insurer is liable for such proportion of the insured value as the insurable value of the part lost bears to the insured value as a whole (Marine Insurance Act 1906, s.72). In practice, the apportionment of the insured value is normally based on the invoiced value of the various goods.