In 2013, the Central Bank of Ireland (CBI) obtained statutory powers to instruct regulated financial services providers to appoint a third party or ‘skilled person’ to prepare a report in respect of any regulatory matter directed by CBI.
The regulated entity appoints the ‘reviewer’ (subject to CBI approval) and is responsible for the management and remuneration of the reviewer with the final report provided both to the reviewer and to the CBI.
The CBI has said that the skilled person may be an auditor, actuary, accountant, lawyer or any other person with the relevant business, technical or technological skills.
The appointment of a skilled person must be approved by the CBI which will have regard to the skills, experience and independence of the proposed reviewer.
Mazars has extensive experience in the execution of skilled person reviews as required by regulatory authorities in relation to risk diagnosis, prevention or remediation, whether in the UK under equivalent legislation (‘Section 166 reports’) or here in Ireland since the Act was introduced in 2013. This work has to date included a number of large Section 166 and other regulatory reviews and investigations into mis-selling, inappropriate lending practices, treatment of small and medium-sized enterprise (SME) customers and a range of other topics.
Mazars draws on its subject matter expertise and breadth of its financial services group in Ireland and Internationally to ensure that the correct team is assembled. We are very familiar and comfortable with skilled person reviews and understand the expectations of the regulator and the impact on the firm and the manner in which both should be balanced.