The guidance aims to achieve better outcomes on firm failures by helping insolvency practitioners (IPs) to understand how to deal with regulated firms in line with the FCA’s expectations.
If an IP is appointed over a regulated firm, the IP takes control of a firm which continues to have regulatory requirements and responsibilities. The new guidance is therefore designed to help IPs ensure regulated firms meet their ongoing regulatory obligations following appointment. This includes treating customers fairly, returning client assets/customer funds and consumer redress.
The guidance is aimed at IPs appointed (or looking to be appointed) over firms solely authorised or registered by the FCA. It may also be relevant from the perspective of conduct regulation for IPs appointed over firms that are dual regulated by the FCA and PRA.
The FCA has engaged with the Insolvency Service, recognised professional bodies and other authorities on this guidance.
The guidance takes effect from 12 May 2021 and can be accessed via the link below: