Skilled Person Report on the risk and control frameworks for a principal firm

The FCA required a Skilled Person Report be provided to assess the adequacy and effectiveness of the Firm’s Governance, Risk Management and oversight of its Appointed Representative population.

This was a 2 phase Skilled Person Report. In phase 1, we performed a number of activities including reviewing the onboarding of each Appointed Representative, assessing how the Firm considered the risks inherent in the business model of each Appointed Representative and then how the Firm tailored its oversight to assess control adequacy and effectiveness. We provided some recommendations on how the Firm could streamline its processes, enhance its internal reporting and demonstrate a robust basis for risk identification, assessment and management.

The second phase of work was to validate the remedial action taken by the Firm and we reviewed the Firm’s updated Risk and Control Self Assessment processes, resource models and internal Governance arrangements. During our work with the Firm, we also provided some independent advice to support the Firm develop an enhanced methodology for its oversight and risk management frameworks.

With support, the Firm developed a robust Risk and Control Self Assessment platform that facilitated more tailored and targeted oversight and reporting. This has supported the Firm not only improve the rigour of its processes but make more effective use of internal resources.