s166 support

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Section 166 of the Financial Services and Markets Act 2000 empowers the Financial Conduct Authority to appoint, or require a regulated firm to appoint a ‘Skilled Person’, to conduct an independent review and produce a report on a regulated firm's systems and controls arrangements.

An FCA Requirements Notice details the scope of work to be undertaken; usually linked to aspects of a business the FCA has concerns about or wishes to better understand.

A Skilled Person uses the Requirements Notice to inform fieldwork planning, including the scope of policies and procedures to be reviewed, and the testing of employee application in practice.

SYSC326 has worked with (or supported) many Skilled Person reviews, including fieldwork planning, execution and report preparation. [NB: SYSC326 is not an FCA Skilled Person Panel member]

The FCA may use a Skilled Person's report to aid inform any next steps remediation, on-going monitoring or other regulatory requirements (or enforcement action) to apply to a regulated firm.

A firm must provide relevant information to a Skilled Person; ensuring that information provided is complete, factually accurate and appropriately supported by contemporary records.

s166 review costs can be substantial and lead to material diversion of senior management time. Ensuring preparation and availability of relevant information can reduce adverse impact. 

Firms can find themselves subject of a s166 review initiated by the FCA, or having to conduct remedial activity following a regulatory review.

Penalties, diversion of senior management time and business impact can be severe, involving on-going monitoring in egregious cases.

We assist with s166 preparation and response; including clarifying client framework arrangements to address financial crime risk.

Our Services
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Useful links
Money Laundering
Challenger Banks

FCA - Financial Crime Guide

FCA - Skilled Person Panel

FCA - Skilled Person Reviews

JMLSG Guidance

FAQ on Anti-Money Laundering