Reports by skilled persons
Reports by skilled persons

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Reports by skilled persons
  • Background
  • The power to require a report
  • The power to collect or update information
  • The skilled person
  • The decision to invoke ss 166 or 166A—appropriate regulator considerations
  • Reporting
  • Duties of the firm
  • Confidentiality and privilege
  • Preparing to deal with a skilled person

Background

The power to require a firm to obtain a report from an independent skilled person (at the firm's own expense) under the Financial Services and Markets Act 2000, s 166 (FSMA 2000) is used regularly by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) as part of their regulatory toolkits.

Either the FCA or the PRA can use this power in circumstances where they want to get more detailed information about a certain aspect of a firm's business and do not have the expertise or resource to conduct the work themselves, and where, for some reason, the firm is not likely to be able to provide an objective view. The power can be used in support of supervisory and enforcement work. This Practice Note provides an overview of this power and the way in which either the FCA or PRA may exercise it, as outlined in chapter 5 of the FCA Handbook Supervision Manual (SUP 5) and the Use of Skilled Persons chapter in the PRA Rulebook.  Further information may also be found on the FCA’s dedicated web page: Skilled person reviews and the FCA’s latest figures for skilled persons reports, Q2 2018/2019, LNB News 01/11/2018 95.

The power to require a report

FSMA 2000, s 166 gives both the PRA and the