A fine calculation - what are the chances of being investigated by the FCA?

Section 166 of the Financial Services and Markets Act 2000 gives the UK Financial Conduct Authority (FCA) the power to require a financial services firm to commission an independent report, known as a Skilled Persons Report, to assess a particular aspect of the firm's business. This report can cover areas such as financial crime risk management, compliance, or governance. The FCA supervises around 50,000 firms, and hands out, on average, 60 regulatory investigations (i.e., s.166) per year. Mario Menz discusses the chances of being subject to a s166 review and what firms can do to either increase or decrease the likelihood of being investigated and fined.

Mario Menz (mario.menz@hotmail.co.uk) is Head of Compliance & MLRO for Ghana International Bank plc, and course director of the LL.M Financial Services Law, Regulation & Compliance at London Metropolitan University.

Section 166 of the Financial Services and Markets Act 2000 gives the UK Financial Conduct Authority (FCA) the power to require a financial services firm to commission an independent report, known as a Skilled Persons Report, to assess a particular aspect of the firm's business. This report can cover areas such as financial crime risk management, compliance, or governance. The FCA supervises around 50,000 firms, and hands out, on average, 60 regulatory investigations (i.e., s.166) per year. Mario Menz discusses the chances of being subject to a s166 review and what firms can do to either increase or decrease the likelihood of being investigated and fined.