The PRA and FCA have published a series of responses to a letter sent by Andrew Tyrie, Chairman of the Treasury Select Committee on 23 June 2014, in which he sought clarification on how the PRA and FCA use their respective powers to require a report by a skilled person in accordance with section 166 of the Financial Services and Markets Act 2000.

Andrew Bailey (Deputy Governor of Prudential Regulation at the Bank of England and Chief Executive Officer of the PRA) has provided two responses.
The first, dated 7 July 2014, sets out the internal systems and controls that the PRA uses to ensure that section 166 reports are only commissioned when it is efficient to do so and in a way that is as economical as possible.
The second letter, dated 21 July 2014, provides cost data on skilled persons’ reviews for the three months to 31 May 2014.

A letter from Martin Wheatley (Chief Executive of the FCA), dated 7 July 2014, similarly describes the FCA’s internal systems and controls used to ensure the effectiveness, consistency and proportionality of skilled person’s reviews, including having
(i) a panel of vetted skilled persons,
(ii) a central skilled persons team to provide challenge and quality assurance,
(iii) a centralised database of all commissioned section 166 reviews,
(iv) regular briefings to skilled person firms, and
(v) the publication of management information and statistics on a quarterly and annual basis.

Copies of letters below:

Martin Wheatley’s letter- http://bit.ly/W1rura
Andrew Bailey’s first letter –http://bit.ly/1B8ORym
Andrew Bailey’s follow-up letter –http://bit.ly/1w0lmfr