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The Financial Conduct Authority (FCA) has published proposed guidance (GC16/5) setting out its approach to wind-down planning designed to help firms close down their regulated business in an orderly manner. The guidance complements the work the Financial Services Authority started and the FCA continued with regards to Threshold Condition 4 (TC4) and the adequacy of resources at firms. Members can access the document by clicking here.
The proposed guidance is aimed at solo regulated firms and explores the concept and process of wind-down planning. It looks at timescales and the people within the firm that need to be involved in the planning process. Different wind-down scenarios which affect a firm’s viability and who would be affected by the decision are also explored. The guide considers what needs to be done during the wind-down period and how to go about cancelling a permission, assessing resources and communicating intended plans.
The proposals do not impose an obligation on firms to create wind-down plans, but suggest a logical approach for those businesses that have decided to engage in such planning. The FCA said it was encouraging firms to consider the guidance as a starting point and tailor a model that best suits their circumstances given that there were so many different approaches to wind-down planning.
Comments about the paper should reach the FCA by Friday 22 July. Email: WDP-feedback@fca.org.uk
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk
The post FCA proposes consultation for guidance on wind-down planning appeared first on British Insurance Brokers' Association.
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