Skilled Persons

FSA Skilled Person Reports or Section 166 Reports

The FSA can commission reports by Skilled Persons (or Consultants) either as part of their own investigation, or, under Section 166 of the Financial Services & Markets Act 2000. The Skilled Person Report is provided to the FSA but paid for by the regulated firm i.e. the Skilled Person/Consultant acts on behalf of the FSA even though the regulated firm is bearing the cost.

Responsibilities

Skilled Persons/Consultants conduct an unbiased and independent review on the regulated firm in the areas directed by the FSA. Such areas may include:

Case reviews with regard to past business and quality of advice
Training and Competence
Review of systems and controls
Corporate governance
Treating customer fairly

The regulated firm is required by the FSA to co-operate with the Skilled Person/Consultants and provide all information requested.

Reports

There may be interim Skilled Person Reports or only one report, but the overall requirement of the Skilled Person is to Report in line with the scope of the Requirement Notice which will often include some or all of the following:

Provide insight into the regulated firms' structure, operations, and levels of business
Identify any risks
Review past business if appropriate
Review systems in place against regulatory principles, rules and guidance
Report any rule breaches or failures in systems
Propose any action required to address the risks involved
Suggest and assist with proposals to mitigate future risk
Monitor any action to be taken

If the FSA require a Report?

The regulated firm will usually be asked to submit the names of up to 3 Skilled Persons/Consultants, together with a synopsis of the proposed activity and cost. The cost is bourne by the regulated firm. The final decision as to the Skilled Person is made by the FSA although in some instances the regulated firm may be able to indicate a preference.

If you need assistance, Insynergi has qualified professionals who understand the commercial sides of your business as well as the requirements of regulation. Our Consultants are matched to suit your needs, so email us now or call us on 01672 514487.