On 19 March 2024, the Financial Conduct Authority (FCA) published a Guidance Consultation, GC24/1, on proposed amendments to FG21/4: Guidance for insolvency practitioners (IPs) on how to approach regulated firms.

FG21/4, published in May 2021, was introduced to help IPs comply with FCA rules and guidance as well as relevant legislation which aim to achieve better outcomes for consumers and market participants following a failure of a regulated firm.

GC24/1 sets out proposed changes to update and improve the existing guidance in FG21/4, in light of changes in the legal framework affecting firm failure (for example, the coming into force of the Payment and Electronic Money Institution Insolvency Regulations 2021), changes in the regulatory framework (for example, the introduction of the Consumer Duty), and changes in the UK economic climate (including significant changes in interest rates). The FCA has also received feedback that, in some areas of the guidance, it could improve clarity or provide more information, so it is proposing amendments to address that feedback.

The proposed guidance is aimed at IPs appointed over firms solely authorised or registered by the FCA, but may also be relevant for IPs appointed over firms that are dual regulated by the FCA and the Prudential Regulation Authority.

The deadline for responses to GC24/1 is 30 April 2024.