Update: On 30 September 2015 the PRA updated Supervisory Statement 7/14 to provide greater clarity on the use of skilled persons in its supervisory approach. The update is intended to highlight that the power to commission reports by skilled persons is a discretionary supervisory tool and the use of skilled persons in an enforcement context is rare. Through the update the PRA also seeks to encourage firms to engage in dialogue with their supervisors before commissioning any external review on subject matters which may be of interest to the PRA to avoid the firm incurring unnecessary costs where the PRA also wishes to make use of skilled persons.
Supervisory Statement 7/14 - September 2015
Published on 19 June 2014
Background
This supervisory statement is addressed to all firms regulated by the PRA. Its purpose is to set out the PRA’s policy on and expectations for the use of the following powers as supervisory tools:
(1) section 166 (Reports by skilled persons) of the Financial Services and Markets Act 2000 (FSMA); and
(2) section 166A (Appointment of skilled person to collect and update information) FSMA.
This statement is intended to be read together with the Use of Skilled Persons Part of the PRA Rulebook which sets out rules on the contract with the skilled person, and associated delivery and costs. Firms are also advised to read sections 166 and 166A of FSMA.
The PRA’s public consultation on this statement closed on 21 March 2014. None of the feedback received led to the need for any substantive amendment to the supervisory statement. This statement takes effect from 19 June 2014.