FG22/4: FCA's approach to compromises for regulated firms

Consultation opens
Consultation closed
Finalised guidance published

We are issuing guidance, to UK based firms regulated by us, on our general approach to compromises. We also summarise feedback to GC22/1 and set out our response. 

Read FG22/4 (PDF)

Why we're issuing this guidance  

We are seeing an increase in the number of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities.    

This guidance clarifies how we approach compromises in line with our statutory objectives to protect consumers and the integrity of markets. Our aim is to help firms understand what information we need and the factors we will consider when deciding if and what actions we will take. Ultimately, it will help firms to avoid proposing compromises that are unacceptable to us because they threaten or adversely affect our statutory objectives. 

Who this applies to  

This guidance is aimed at: 

  • firms solely regulated by the FCA  
  • firms that are dual regulated by the FCA and PRA from the perspective of conduct regulation 

It is also relevant to:  

  • advisers of regulated firms considering compromises (including insolvency practitioners and professional advisers)   
  • trade associations   
  • consumers and consumer protection organisations  

Page updates

: Editorial amendment typo corrected