Concern over no set standard for compliance consultants
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Compliance consultant Adam Samuel has warned that third parties approved by the FSA to carry out skilled persons reports are not required to meet minimum qualification standards.
The reports are used by the FSA to assess risks in firms’ business models. The reports, ordered by the regulator, are carried out by third parties such as auditors and can cost thousands of pounds.
In March, the FSA estimated that 140 skilled persons reports will be ordered in 2011/12, compared to 88 the previous year.
Samuel says: “Compliance experts, including those who carry out skilled persons reports, are not subject to a standard qualification, which means they may not have the skills necessary to conduct these costly reviews.”
The FSA handbook defines a skilled person as someone “appearing to the FSA to have the skills necessary to make a report on the matter concerned.”
An FSA spokeswoman says: “Skilled persons are not always brought in for one set reason, therefore it would perhaps not be appropriate to set a standard qualification.”
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Readers' comments (4)
Julian Stevens | 20 Apr 2011 5:13 pm
Nor is anyone at the FSA required to meet any sort of minimum qualification standards and look what a lamentaby under-skilled outfit that is. The FSA couldn't (or probably wouldn't) see a crisis coming if it was going off like Krakatoa fifty miles away.
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Lee Werrell | 20 Apr 2011 9:18 pm
A skilled person can often be a person with the previous experience or qualification and a set qualification standard may not be the answer. However, as certain standards are required, a membership of a recognised body or institute should stand them in good stead, such as the CII, CISI or Association of Professional Compliance Consultants, which CEI Compliance are members of all the above should be reassurance to the firm and the FSA that the consultancy is adequately prepared to "read between the lines" and find the required evidence, even if the firm does not articulate itself in the best way.
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Exasperated Me | 21 Apr 2011 10:16 am
What has regulation done for society?
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Adam Samuel | 3 May 2011 12:51 pm
APCC membership does not require any qualifications
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