Regulatory Monitorships & FCA s.166 Investigations
Delivering regulatory investigations in line with regulators’ expectations and standards.
SERVICESService Overview
- What is the
client issue? -
Regulators both in the US and the UK have the legal powers to mandate that firms appoint an external third-party for investigative reviews where the regulators have particular concerns in specific areas.
Regulator-mandated Skilled Persons reviews in the UK and Regulatory Monitorships in the US are required to be carried out by appropriately experienced, qualified and skilled consultants.
- How does
Optima help? -
Optima has carried out both s166 Skilled Persons reviews in the UK and Regulatory Monitorships in the US and is, therefore, known and trusted by regulators to be appointed as the expert third-party to deliver on these types of investigations. We have a tried and tested approach in scoping and delivering such reviews and specifically understand the expectations of both the FCA and the SEC in terms of the level of scope, testing approach, detail, structure and reporting for such these investigations.
Skilled Person Review
Under Section 166 of the Financial Services and Markets Act 2000, the FCA may require a firm to instruct – or may instruct itself – a third party (a Skilled Person) to undertake a review of a particular issue or business area. This is known as a Skilled Person Review.
Typically, Skilled Person Reviews are required by regulators where their own deep dive reviews or other supervisory work gives 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 approval by the regulator) or selected directly by the regulator.
When issued with the Section 166 notice, the firm is provided with a Requirements Notice, which includes the areas of scope, timeline and FCA expectations. The firm is expected to select the Skilled Person, who will be approved by the FCA prior to the engagement. The Skilled Person is contractually obligated to perform the scope of review and report to the FCA and the firm simultaneously on the findings in a relatively short timeframe.
Our experts have delivered Section 166 reviews with very positive feedback from regulated firms and the regulator.
STUDY
Optima Updates
Subscribe to our newsletter and receive regular updates
on the regulatory landscape and our services.