Advice firms turn to early intervention as section 166 reviews on the rise

The Financial Conduct Authority's (FCA) increased use of skilled person reviews has led to a shift toward voluntary remediation and voluntary requirement agreements, also known as VREQ, to tackle escalating compliance costs, according to Kennedy's partner Rekha Cooke. She told PA that section 166 reviews, which mean the FCA can appoint an independent third party to examine a firm's conduct or systems, have evolved into "a costly and resource-intensive exercise" that can drain firms of time, money and reputation. "A section 166 can easily cost in excess of £1.5m," Cooke explained. "We'...