Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter