The FCA and PRA have been granted regulatory tools to aid the regulation of financial services firms, one of which being the Skilled Person Review via the Skilled Person Panel of firms.
Financial services regulation is of course there for the 3 objectives that we are all very familiar with: protecting customers; enhancing market integrity; and maintaining competitive markets in the interests of the consumer.
Skilled Person Review
To aid the regulation of these firms the now FCA and PRA have been granted regulatory tools, one of which being the Skilled Person Review. The FSMA gives both regulators the power to seek an independent review of a firm’s activity by either contracting directly with the skilled person firm or following the traditional model of the regulated firm contracting the skilled person themselves.
Skilled Person Panel
In order to ensure the consistently high quality of these independent reviews, the FSA created a panel of firms who have a reliable track record of delivering on their allocated lots.
The size and nature of the firms varies from single partner organisations to the Big 4, with an interesting number of resourcing firms appearing to have developed a consulting strategy.
With so many of the professional service firms being successful in several of the lots, and with regulation in general keeping the risk and regulation practices busy, additional pressure on resources to deliver means there is a need to reach out to the market. One proven way for firms to employ a flexible skilled resource for these reviews is to use professional interims.
Professional Service Resources
Many of the associates we work with have previously held control functions and have established relationships with the FCA and PRA, making them a reliable option to partner with during peaks in regulatory workflow.
As with any niche discipline, the network of risk and regulation individuals is limited. The challenge for professional service firms in the next 3 years of panel running will be to maintain relationships with a pool of associates that allows them to confidently bid for work, whilst being transparent with the regulator as to who will be conducting the reviews.
Grovelands has been working with a number of our clients and associates to develop a walled garden whereby both parties can meet with each other and discuss how they could work together in the future. This mechanism means that teams of professionals can quickly be mobilised, responding to client and regulator demand.
We will be following the regulator and how they use and adapt the panel over the next few years. In the meantime if you have an experience of being part of the panel, or would like to discuss how you can use our walled garden, I would be happy to meet for a coffee anytime.
– David-James Marker