Multiple principals

An AR may act for more than one principal unless its type of business or its contract forbids it. Where it does, each pair of principals must have a written multiple principal agreement, in place before appointment, that splits responsibility between them and names a lead principal for complaints.

When it is allowed

Allowed in principle (SUP 12.2.4G). Not allowed for retail designated investment business, MCD credit intermediation or tied-agent business, and limited to one principal per type of home finance (SUP 12.5.6AR, 12.5.6BG).
No limit for non-investment insurance (SUP 12.5.6CG), and consumer credit broking is not on the restricted list.

What the principals must do

Sign a multiple principal agreement with every other principal before appointing, covering scope, complaints, financial promotions, monitoring, approved persons, training and information sharing (SUP 12.4.5BR, SUP 12.4.5C). It is not needed for IARs.
Check the Register and ask the AR about existing principals, and contact them (SUP 12.4.5AG).
Being appointed by an additional principal triggers a review (SUP 12.6A.3R).
In REP025 each principal reports its own regulated revenue, and only the lead principal reports non-regulated revenue (SUP 12.7.9DR(5)).

Common misconceptions

“The AR must sign the multiple principal agreement.”: The agreement is between the principals. Whether the AR sees it or becomes a party is up to them (SUP 12.4.5GG).
“The lead principal is liable for complaints.”: A customer may pursue a complaint with the lead principal, but not necessarily against it (SUP 12.4.5DG).

In Merrin

Merrin flags a firm with more than one principal, and the FCA Register monitor raises an issue when a new principal appears.

Monitoring & issues

Sources

Checked against these sources on 23 October 2026. This is general information, not legal advice.

See what your team could stop doing by hand

Walk through onboarding, monitoring and reviews with your own oversight process in mind.

Schedule a demo