The Financial Services Authority is consulting on proposed changes to its handbook in the run-up to its bifurcation, including proposals that will allow it appoint its own skilled person and then charge the cost back to a firm.
The consultation paper, published 8 February, proposes updating the handbook to bring it in line with planned Financial Conduct Authority policy regarding disciplinary powers, skilled persons reports, own-initiative powers and cancelling approval of primary information providers.
Included in the changes are tweaks to reflect the incoming regulators’ ability to directly appoint a skilled person to conduct an independent review of regulatory matters. Previously these individuals would be appointed by the firm.
The FSA argues this will help eliminate potential conflict of interest arising from firms appointing the people who review its compliance with regulation.
This new power would also allow the regulators to appoint a skilled person where an authorised person has breached a requirement to collect information.
Responses to the consultation paper should reach the FSA by 1 March 2013.
