Financial services consultancy firm Capco has launched a skilled persons report service for firms that have been ordered to conduct an s166 review.
Under the Financial Services and Markets Act, the FSA can force a firm to appoint a skilled person to carry out a section 166 or skilled persons report.
It checks for weaknesses and failings in a firm’s practices and looks at areas such as compliance, fraud, products and capital adequacy. It must be carried out by an independent third party which then reports to the FSA.
In March, the FSA revealed plans to force around 140 firms to hire a company to conduct an s166 report during 2011/12. In 2009/10, the FSA ordered 88 s166 reports, costing firms a total of £24.8m.
Baronworth Investment Services director Colin Jackson says: “If a firm is ordered to carry out a skilled persons report, it must make sure that whoever it brings in meets the regulator’s requirements. Firms need to carefully vet third parties before they are used.”