S166 Requirements Notice

Section 166 of the Financial Services and Markets Act gives the FCA the power to commission reports by “Skilled Persons” in order to obtain an independent view of any aspect of a firm’s activities.

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How can these issues affect your organisation?

If you receive a requirements notice from the FCA it’s crucial that you respond to it in a timely manner and that you liaise appropriately with the FCA during the course of the process. If your organisation doesn’t do this, your relationship with the FCA could be adversely affected.

There is normally a breathing space between the initial notification and request for you to appoint a Skilled Person, unless the FCA have directly appointed one where they consider the urgent intervention necessary. Using us to advise on the requirements notice and the questions to ask your prospective S166 auditors can answer a lot of questions and save you a protracted engagement, costing you money every day.

It’s important to get it right, because the Report and recommendations provided by the Skilled Person will also help the FCA to determine:

  • FCA supervision going forward.
  • Whether enforcement action should be taken against a firm or individuals.
  • Whether a post s166 review should be conducted to ensure any improvements / recommendations have been implemented.

How can we help?

The Compliance Consultant team has experience of S166 Reports in the financial services sector from IFAs to FTSE 100 Companies (we were appointed as a “Skilled Person” previously), as well as working on the Risk Mitigation Plans (RMP) following the Review. That means we’re ideally placed to assist clients as they work with their legal advisers and internal operations staff.

It is a myth that the Skilled Person Firm has to conduct the RMP work. As long as the work is done to the expected standard, anyone can conduct the work for you, and we can operate at a far lower cost.

We can liaise with the FCA to make sure that the remedial compliance and risk work is performed to the highest standard and that it provides clear, tailored responses and embedding to the recommendations.

Our work may include:

The Compliance Consultant team can work independently or with other specialist teams such as your legal advisers, discrete financial advisers if your ICAAP or ILAS is in scope, or indeed anyone else you see fit to do the work.

Preparation is key and we can help you and your staff prepare in a number of ways;

  • Conducting interviews.
  • Undertaking email and document reviews to provide documentary evidence.
  • Evidencing due diligence for risk identification and assessment.
  • Identifying causation in sales cases where evidence is not clearly evidenced.
  • Follow-up on remedial action taken previously.
  • Ongoing communication with the FCA.
  • We can also help you create an embedding schedule for the remedial compliance and risk work.

Call us NOW on 0207 097 1434 or email info@complianceconsultant.org

See Also – How To Manage an RMP.

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