Prudential Regulation Authority Rulebook

4.1

The PRA expects a skilled person to clarify or discuss any matters that are raised by the PRA regarding a contract before it is finalised.

4.2

The PRA expects the skilled person normally to give a periodic update on progress and issues during the engagement, the frequency of which is to be discussed with the PRA. This should allow for a re-focusing of the report if necessary.

4.3

The channel of communication would normally be directly between the skilled person and the PRA. The skilled person would usually be expected to keep the firm informed of any communication between the skilled person and the PRA. It may be appropriate for the skilled person to communicate matters of material significance to the PRA set out in the rule in Use of skilled persons 3.1(1)(b), without first informing the firm.

4.4

If the PRA is considering asking for additional information during the engagement, it will take into consideration the cost of the skilled person complying with the request and the benefit that the PRA may derive from the information. In most cases, the PRA will not need to request a skilled person to give it source data, documents and working papers. However, the PRA may do so when it reasonably believes that this information will be relevant to any investigation it may be conducting, or any action it may consider taking against the firm.

4.4A

In the relatively rare situation where enforcement action is anticipated as a likely outcome the PRA would normally signal this to the skilled person prior to work commencing, as this will impact the type of evidence which should be provided in support of the findings in the skilled person report.

4.5

The PRA will normally contact the relevant persons to discuss the PRA’s requirements before finalising its notice to require a report or the updating or collection of information by a skilled person.

4.6

The PRA will give written notification to the relevant persons of the purpose of the report or collection or updating of information, its scope, the timetable for completion and any other relevant matters. The PRA will state the matters which the report is to contain, or the information which is to be collected or updated, as well as any requirements as to the report’s format.

4.7

The PRA attaches importance to there being a timetable for each report and to the skilled person, with the co-operation of the relevant persons keeping to that timetable.

4.8

Where the skilled person is appointed by a firm, the PRA will normally require the skilled person to report to the PRA through that firm. Where the skilled person is to be appointed by the PRA itself, the skilled person will report directly to the PRA.

4.9

The skilled person is expected to provide the PRA with identical copies of any draft report or relevant information at the same time they are issued to the firm. The PRA expects that a firm will be given the opportunity to provide written comments on the report or the collection of the relevant information prior to its final submission to the PRA.

4.10

The PRA will normally specify a time limit within which it expects the skilled person to deliver the report or collect or update the relevant information.

4.11

If the skilled person becomes aware that the report, or collection or updating of the relevant information may not be delivered on time, they should inform the PRA and the firm as soon as possible. Where the skilled person is appointed by a firm and if the skilled person becomes aware that there may be difficulties delivering the report, or collecting or updating the relevant information within cost estimates, the skilled person should advise the firm may also wish to discuss the final report with the skilled person but without the regulated firm.

4.12

The PRA may meet with the firm and the skilled person together to discuss the final report. The PRA may also wish to discuss the final report with the skilled person but without the regulated firm.