Find out about skilled person reviews.
Under the Financial Services and Markets Act, as amended by the 2012 Act, we have the power to obtain a view from a third party (a ‘skilled person’) about aspects of a regulated firm's activities if we are concerned or want further analysis.
We can commission two types of skilled person review:
- s166 reports by skilled persons
- s166A appointment of skilled person to collect and update information.
There are two possible approaches to appointing the skilled person firm. For each review we decide which approach is the most appropriate:
- The regulated firm puts forward its preferred choice of skilled person firm for our approval. Once approved, the firm contracts with the skilled person firm.
- We contract directly with a skilled person firm. If we contract directly and appoint the skilled person firm, there will be an appropriate level of dialogue with the regulated firm during the appointment process and the review itself. We will conduct a tender process, where appropriate, to identify the most suitable skilled person firm, assessing technical capabilities, resources available, conflicts of interest and commercial aspects. Our rules enable us to require the regulated firm to pay the costs of such skilled person reviews as a fee.
More information about the s166 process can be found in SUP 5 of the Handbook:
- SUP 5.3 for an overview of the FCA’s policy on the use of skilled persons.
- SUP 5.4 provides details about scoping a review; the appointment process; and reporting.
- SUP 5.5 outlines a Firm’s duties during a review.
Skilled Person Panel
To enable us to contract directly with the skilled person firm, in line with the European Procurement Directive and the Public Contracts Regulations 2015, we developed a Skilled Person Panel. The panel is divided into 14 subject categories known as ‘Lots’ and is effective until 31 March 2021.
Where the regulated firm contracts with the skilled person firm it may consider sourcing a supplier listed on the Skilled Person Panel. The regulated firm remains responsible for assessing the individual appropriateness of the skilled person firm for its particular requirements. The regulated firm should consider the guidance in SUP 5.4 of the Handbook when appointing a skilled person firm.
Please see the 14 associated Lot Descriptions.
Number of reports commissioned
For the current financial year, we publish information once a quarter on how often we commission skilled person reviews:
Information about skilled person reviews commissioned over each financial year is published in our Annual Reports: