FCA has finalised its non-Handbook guidance on how IPs should approach insolvencies of regulated firms. The guidance focuses on how an IP appointed to a regulated firm should ensure the firm meets its ongoing financial regulatory obligations.
The guidance follows the consultation version, with some minor changes following responses, which were broadly supportive of the guidance.
The guidance covers:
- pre-insolvency considerations, including sharing court documentation with FCA;
- FCA’s expectations of IPs at the point of a firm entering insolvency, such as immediate customer communications;
- expectations during insolvency, including treatment of client assets and treating customer fairly;
- expectations where firms enter into restructuring arrangements; and
- a checklist
The guidance takes effect from 12 May 2021.