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.

Investment managers and banks top FSA Section 166 chart

Investment managers and banks top FSA Section 166 chart

Investment managers and banks accounted for the largest portion of Section 166, or skilled person reports, commissioned by the regulator over its first quarter.

The reports often result from a Financial Services Authority (FSA) visit and are used to assess whether rules have been broken or if further action might be needed at a firm.

The FSA's power to commission the documents have proved controversial, largely because they have been found to cost firms up to £2 million and swallow up 500 hours of staff time in extreme circumstances.

According to the latest data covering the three months ended 30 June, the City watchdog ordered 23 reports across regulated firms, of which investment managers accounted for four and banks and building societies, seven.

Two reports were commissioned for personal investment firms and a further four at securities and futures firms.

The data has been released as the FSA looks to enter the final stage of a procurement process that will see Section 166 reports tendered out to an approved panel.  Last month the regulator announced it was developing a new process to enable its replacement bodies the Financial Conduct Authority, Prudential Regulation Authority and Bank of England to appoint a skilled person directly.

These individuals could provide a report on any regulated firm or regulated investment exchange, the FSA said, adding that the change in the way Section 166 reports are handled is being ushered in as an amendment to the Financial Services Bill.

The FSA has decided to establish a skilled person panel in two parts, the first of which it put out to tender mid-September and which covers work expected to exceed £173,934.

Selection for the second part will begin later this month, and covers work not meeting the above threshold.

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: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter