Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

FSA gets tough as figures reveal 65% spike in skilled persons reports

FSA gets tough as figures reveal 65% spike in skilled persons reports

There has been a 65% rise in the number of skilled persons reports commissioned by the Financial Services Authority (FSA).

Quarter on quarter, the last data from the regulator has shown that the number of skilled persons, or section 166 reports, has climbed from 23 to 38.

Banks continue have continued to top the list of firms asked to complete the studies, usually ordered where the FSA wants to take a closer look at a business' systems and processes.

According to previous investigations by Wealth Manager, skilled person reports can cost up to £2 million and swallow up to 500 hours of staff time.

Earlier this month Ashcourt Rowan was fined £412,000 by the FSA and later said this was in fact linked to two section 166 orders for suitability issues within its Savoy Investment Management business. At the time, the listed wealth manager's group chief executive Jonathan Polin said he believed Ashcourt Rowan would be the first of many eventually hit by the FSA's rule.

The latest figures from the FSA showed that banks and building societies accounted for 21 of the 38 section 166 reports commissioned, looking at the three month stretch running to 30 September.

Four reports were commissioned in respect of investment managers with personal investment firms also asked to commission four reports.

During the FSA's first quarter, which ran to the end of June, the regulator ordered a total of 23 reports. Banks again accounted for the bulk of these, followed by investment management and securities and futures firms.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter