The FCA has new powers to issue section 166s - or skilled person reports - which are both costly and burdensome for the firms subjected to them, including advisers.
Historically, advisory firms haven't often been issued with section 166 reviews. The reports - which are effectively third-party spot checks on particular areas of a business - are typically required of larger firms, such as banks. The reviews have been around since the inception of the Financial Services Authority (FSA) but, with its split into the Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA), regulators have been granted new s166 powers. Now the FCA can appoint a skilled person directly, effectively giving it total control over the process. The regu...
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