Enactment of Guidelines or Rules
The Financial Conduct Authority (FCA) is contemplating potential updates to its investigations panel, specifically focusing on the process for Skilled-Person Reviews.
In a recent move, the FCA is seeking insights from firms on whether this process necessitates an overhaul.
As of now, the FCA has not announced any specific changes to the Skilled-Person Reviews. However, data from the authority reveals a consistent trend in the use of these reviews.
Over the past year, the number of Skilled-Person reviews commissioned by the FCA has decreased by 60%, with 48 reviews initiated across all sectors in 2024/25. This decrease follows a similar trend from previous years, suggesting a stable approach to the use of these reviews when warranted.
These Skilled-Person reviews are conducted to examine specific areas of concern within regulated firms, such as conduct, financial controls, systems, and governance. The reviews can result in remedial actions, enforcement actions, or restrictions on business activities if significant discrepancies are found.
While not directly associated with Skilled-Person reviews, it is worth noting that the FCA also receives whistleblowing reports, which can influence regulatory decisions and enforcement actions. In Q1 2025, the FCA received 281 new whistleblowing reports.
At this point, there is no concrete information regarding proposed updates for Skilled-Person reviews. However, the FCA continues to employ these reviews as a means of regulatory oversight when required.
- The Financial Conduct Authority (FCA) is exploring the possibility of revising its Skilled-Person Reviews process, particularly related to the panel's investigations, in light of the recent decrease in the number of reviews and their consistent trend of use.
- Given the FCA's pursuit of potential updates in its Skilled-Person Reviews process, one might expect changes in the regulation of finance across various businesses if significant issues are discovered during these reviews.
