Within the Financial Services, the OCREUS Group is part of the supplier list of firms on the FCA and Bank of England / PRA panel for s166 “Skilled Person” reviews.
Under the Financial Services and Markets Act, the FCA and PRA have powers to appoint a suitably qualified third party (a “Skilled Person”) to report on aspects of a regulated firm’s activities if they are concerned or want further information or analysis. Two sections of FSMA empower the regulators to commission skilled person reviews:
- s166 reports by skilled persons; and/or
- s166A appointment of a skilled person to collect and update information.
Typically, skilled persons reviews are ordered by regulators where their own deep dive reviews or other supervisory work give rise to concerns that warrant an independent examination. Depending on the level of such concern, the extent to which management have been open, transparent and cooperative, and other factors, the skilled person may be selected either by the firm being reviewed (subject to being approved by the regulator), or selected directly by the regulator.
The regulator will issue a draft “Requirements Notice” to the firm that formally orders the skilled person review and sets out the review scope and other parameters. Once the reviewer has been appointed the draft notice will be finalised and the review can start.
The skilled person review reporting process is robust and transparent. The draft report is normally delivered to the regulator at the same time as the firm, and all management comments and any changes to the draft are fully tracked and reported to the regulator. Following issue of the final report a closeout meeting allows discussion between the reviewer, regulator and firm. Often the reviewer will require firm management to make formal representations as part of the reporting process.
The firm will then be given a timeline to implement any necessary changes or remediation identified by the reviewer by the regulator.
The OCREUS Group is able to conduct formal skilled persons reviews within three of the FCA / PRA subject matter lots for directly appointed s.166 reviews:
Lot A – Client Assets
Lot B – Governance and Individual Accountability
Lot E – Financial Crime
Where a regulated firm wishes to propose appointment and contract with the OCREUS Group (indirect), then the OCREUS Group can be considered for s.166 reviews across any of the skilled persons panel lots.
Some firms may wish to commission preparatory reviews to ensure management can get visibility of the issues that might arise should a formal review be required, or in parallel with a formal review, to obtain additional data or an alternative view.
Please contact us here for FCA / BoE / PRA skilled person review enquiries.