Firms issued with an S166 Requirement Notice need to nominate a Skilled Person, to be approved by the appropriate regulator, to carry out the review.
As from 1 April 2017, Bovill was appointed to the Skilled Person Panel in the following areas:
- Client Assets
- Governance and individual accountability
- Conduct of Business
- Financial Crime
- Prudential (credit, market, pension, and liquidity risk within investment firms, intermediaries and Recognised Investment Exchanges).
Under section 166 of the Financial Services and Markets Act (s166), the regulator has the power to require a firm to appoint a Skilled Person to produce a report on specified matters or to appoint a skilled person directly. For example, a review of past business in a particular area or sales of a particular product; a review of a firm’s compliance with the client money and asset rules; or a review of a firm’s systems and controls. Firms issued with an s166 Requirement Notice need to appoint a skilled person. If the regulator makes a direct appointment it must select a skilled person from its panel. You can see the Panel in full on the FCA and PRA websites.
Our s166 experience
We’ve got extensive s166 experience having been appointed as a Skilled Person on numerous occasions to carry out detailed reviews and produce a report that meets both the target firm’s and regulator’s satisfaction. Some examples:
- A financial crime review at a major European bank
- An extensive review of CASS compliance at an asset management services firm
- A review of the suitability of the private client wealth management offering of a large discretionary manager
- A post-remedial review of CASS compliance for a firm holding client money and safeguarding assets
- A review of complaints handling and past business review of a national IFA network
- A post-remedial review of the suitability of a wealth management service offering
- A past business review of sales of certain ‘high risk’ products made by an IFA firm
- A healthcheck review of suitability for a major wealth management group
- A past business review of the sales of small cap stocks made by a private client stockbroker.
How we can help with you Skilled Person review (s166)
We take pride in doing a thorough and considered job, and providing a report that is accurate, balanced and fair. Any issues identified in our reports are accompanied by practical and proportionate recommendations. We keep everyone in the loop as we do the work, and ensure findings are fully discussed before our final Skilled Person report is issued.
If the regulator has told you to appoint a Skilled Person, or you think they might be considering doing so, give us a call to see how we can help.