Skilled Person Reviews The Protiviti team has extensive experience of supporting clients to prepare, manage and complete successful Skilled Person Reviews. This experience covers many sectors and different regulatory topics with firms of varying size and complexity. The breadth of experience and subject matter expertise we offer enables us to provide you with insights and support in dealing with topics covering the full range of regulatory topic covered by the FCA/PRA, including from Governance and Oversight through the many technical regulatory requirements. Whether you have already received a Draft Requirement Notice from the regulator; or you want to ensure that your regulatory strategy will not expose you to the risk of future regulatory action; or you to carry out remedial activity following a Skilled Person report, our team can help. We understand the implications a Skilled Person review can pose on individuals and the business and therefore know how to structure a programme to provide confidence over areas likely to be a key focus for the regulator. Skilled Person Review (S166) A Skilled Person Review is usually the culmination of a regulator intervention or interaction into a particular area of the business. IT can be based on a thematic review into a particular sector issue or may result in the normal course of supervision work. This therefore means that even before a review is commissioned by the regulators there is time for firms to get ready and prepare well for them. Protiviti supports our clients by ensuring they are properly prepared for Skilled Person Reviews. This work can involve any number of activities but typically will include providing an early, independent view on the area being assessed by the regulator; engaging with the senior team and relevant stakeholders to explain what is likely to happen; helping the firm, senior management and individuals prepare for the review, including, for example, by conducting mock interviews; conducting an initial gap analysis to identify potential areas of regulatory concern; preparing a response and project plan to address any gaps and providing insight as to the likely areas of focus. We help our clients to prepare for the Skilled Persons Review and proactively manage their relationships with the Skilled Person and the regulator. Skilled Person Review (S166) - United Kingdom Regulator Investigatory Tool The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) (“the regulators”) use this supervisory tool to commission reviews under Section 166 (S166) of the Financial Services and Markets Act 2000 or Section 195 (S195) of the Banking Act 2009. It is an independent investigation of a regulated firm which enables the regulators to gain clarity on a particular matter. The regulators will either appoint a firm directly or request the firm to appoint the skilled person. A Skilled Person Review brings regulatory scrutiny which can result in operational disruption, reputational risk, and an unknown outcome. The outcome of the Skilled Person Review is likely to shape the future supervisory approach that the FCA will take for your firm. Protiviti’s experience in conducting Skilled Person Reviews means that we understand the likely focus areas of particular reviews, help you navigate your way through a Skilled Person Review in order to build and enhance trust with the regulator, provide you with insight on how to set up, manage and deliver an appropriate review and upskill your own teams and senior management along the way. This approach ensures that the future relationship with the regulator is positive. Skilled Person Reviews are a learning process for each party involved and a good opportunity to correct any misunderstandings that you may perceive there are about your firm. Protiviti’s approach to supporting the delivery of Skilled Person Reviews is to proactively manage the expectations of the FCA and you by having regular updates and confirming findings and recommendations on a continuous basis to ensure all parties can understand and challenge if appropriate. We will help you prepare for the Skilled Person Review with a positive intent, to manage any misconceptions Our Approach We approach each Skilled Person Review through a principles-based lens, focusing on your firm, individual conduct and the principles associated with the review topic. We will help you prepare for the Skilled Person Review with a positive intent, to manage any misconceptions there may be and to ensure a good relationship with the regulator at the end of the review process. Through appropriate scoping and planning we will help you set out the appropriate steps to build the necessary capability and embedded process. Our approach involves managing proactively the expectations of the regulator and the firm by having regular updates and confirming findings and recommendations on a continuous basis. This means no surprises when producing outputs and allows you to implement timely remedial activity. We will help you prepare for the Skilled Person Review with a positive intent, to manage any misconceptions Managing the relationships Good communication is key in dealing with a Skilled Person Review. Protiviti always approaches this by liaising with the regulator regularly to ensure the delivery of the full scope to the highest standard along with recommendations which are clear, relevant and appropriate for your firm. Engaging with the regulator can be an unfamiliar activity for firms and throughout the Skilled Person Review there will be open dialogue with the regulator in both bilateral and trilateral meetings. These meetings tend to occur at the start and end of phases of activity to ensure all parties are aware of coverage, scope and output. We will support you in maintaining an ongoing trusting relationship with the regulator. Skilled person Reviews are a learning process for each part of the trilateral relationship and a good opportunity for your firm to correct any misunderstandings you may perceive there are. Protiviti can support this activity by reviewing and verifying the completeness of actions undertaken Following a Skilled Person Report It is typical for the regulatory authorities to track progress to addressing any issues or recommendations highlighted by the Skilled Person Review closely. Sometimes there may remediation activity required to ensure that the right customer and business outcomes result. Protiviti can support this activity by reviewing and verifying the completeness of actions undertaken following the Skilled Person Report recommendations and identify any areas where controls have not been completed or embedded to avoid any additional regulatory scrutiny to your firm. Where recommendations need to be actioned or controls improved Protiviti would usually assist you by conducting a gap analysis which would seek to review and test the responses and actions taken by you and highlight any improvements that may be required. Protiviti can also support in any implementation or remediation support needed. It is likely that the Skilled Person Report will require some change, be this building new governance, control or operational measures or conducting specific customer contact or rectification activity. Protiviti’s experienced implementation specialists can provide support and insight in all these areas. Protiviti can support this activity by reviewing and verifying the completeness of actions undertaken Leadership Bernadine Reese Bernadine is a Managing Director within our Financial Services Industry (FSI) Regulatory practice in the UK. Prior to joining Protiviti ten years ago, Bernadine was a Director in KPMG’s Regulatory Services practice. A chartered accountant by training, Bernadine has over ... Learn more
