Skilled Person Report to oversee a brokerage firm safely exit the UK retail market

The FCA required that our client appoint a third party to oversee their exit from the retail broking market. We supported them with their exit processes and assessed their client money and assets arrangements. This included the robustness of their processes and controls for returning assets to their retail customers.

We performed a detailed analysis of the characteristics of the clients requiring exit, overseeing the firm’s processes for communicating with customers, managing illiquid assets, acting on client trading requests and transferring cash and assets to third parties.

The review considered the firm’s Governance, resourcing, project management, Client Assets and Money systems and controls, engagement with its customers and the FCA and the accuracy and timeliness of processing client transfer requests. To achieve this, we performed forensic data analysis of the scope of customers and assets to be exited, reviewed customer files, tested reconciliations and attended internal firm working group meetings.

Our client was able to materially speed up its exit arrangements, ensure more timely return of assets to customers, better understand and deal with customers with specific risk exposures (such as illiquid assets and open positions) and enhance its ongoing engagement with the regulator.

John Davison

John Davison

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