We are consulting on non-handbook guidance for insolvency practitioners (IPs) on how to approach insolvencies of regulated firms. The proposed guidance aims to help IPs comply with our rules and guidance and relevant legislation which aim to achieve better outcomes for consumers and market participants following the failure of a regulated firm.
Who this applies to
The proposed guidance is aimed at IPs appointed over firms solely authorised or registered by the FCA, but may also be relevant to firms that are dual regulated by the FCA and PRA. The proposed guidance may also be of interest to professional advisers, trade associations, firms and consumers.
Minimising the impact of a regulated firm failure is a key FCA priority. If an IP is appointed over a regulated firm, the IP takes control of the firm which continues to have regulatory requirements and responsibilities. While we cannot stop firms failing, we aim to help minimise disorderly failures that cause serious harm to both consumers and markets. This involves working with IPs appointed over regulated firms to reduce such harm where possible.
We supervise regulated firms, including those in insolvency proceedings, while they continue to be authorised or registered by us. The proposed guidance is our view of how an IP should ensure regulated firms meet their ongoing financial services regulatory obligations following appointment.
Respond to this consultation
We welcome comments from stakeholders on this draft guidance by 18 January 2021.
You can send them to us using the online response form or you can email your responses to [email protected].
We want to know what you think of our proposed guidance. We will consider your feedback and publish our final guidance in due course.