Prudential Regulation Authority Rulebook

3.1

When the PRA is contracting directly with a skilled person it will itself appoint the skilled person. Where it is considered appropriate for a firm to contract with a skilled person, the PRA may nominate the skilled person or where the firm is asked to propose a skilled person, the PRA will direct the firm to the skilled persons in the relevant lot(s) on the Panel and ask the firm to submit a shortlist of nominees for the PRA to approve. Where the firm is contracting with a skilled person, it remains a firm’s responsibility to assess the individual appropriateness of the skilled person.

3.2

To enable the PRA to use its power to appoint a skilled person in line with the European Procurement Directive and the Public Contracts Regulation 2006, a panel of skilled persons (‘the Panel’) has been developed for use by the PRA.

3.3

Where the PRA is contracting directly with the skilled person, the PRA will conduct a tender process, where appropriate, to identify the most suitable skilled person. This will include the considerations detailed below. 

3.4

When considering whether to nominate, approve or appoint a skilled person, the PRA will consider the circumstances of the case, including whether the proposed skilled person appears to have:

1. (i) the necessary skills and any relevant specialised knowledge: relating to the business model of the firm and the particular subject matter area;
2. (ii) sufficient resources: to complete the report or collect or update the information within the time expected by the PRA;
3. (iii) any professional difficulty, potential conflict of interest, or insufficient detachment: such matters would include:
   1. a. matters already reported on by the skilled person (for example, on the financial statements of a firm or in relation to their systems and controls);
   2. b. matters that are likely to be contentious and may result in disciplinary or other enforcement action against a firm, its management, shareholders or controllers; or
   3. c. matters that the skilled person has been involved in, in another capacity (for example, when a skilled person has been involved in developing an information system it may not be appropriate for them to provide a subsequent opinion on the adequacy of the system).