FCA has published a guidance consultation to help insolvency practitioners in their approach to insolvencies of regulated firms – particularly solo-regulated firms. It is aimed to help minimise the impact of failure of a firm, and to discuss how FCA can work with the IP to reduce harm. While regulated firms are still authorised, FCA continues to supervise them, and the guidance sets out its views on how an IP should ensure the firm meets its ongoing financial regulatory obligations following appointment.
The guidance covers:
- FCA’s role in regulated firm failures;
- considerations before a firm enters into an insolvency procedure, such as getting consent for out-of-court administration appointments and sharing court documentation with FCA;
- considerations on entry into insolvency, particularly communications with clients and creditors;
- during insolvency, including FCA’s expectations on treatment of client assets and TCF; and
FCA asks for comments on the guidance by 18 January 2021.