The FCA has published Guidance Consultation 16/5: Proposed Guidance on wind-down planning (GC16/5).
Annex 2 to GC16/5 contains a draft approach document, The FCA’s approach to wind-down planning. The approach document is intended to offer an approach to wind-down planning to assist any solo regulated firms that may need to wind-down. It is not a prescribed approach and firms can depart from it as they choose or use completely different approaches. The approach document does not by itself impose any obligations on firms to create wind-down plans. The intention of the approach document is to make some helpful suggestions in order to assist firms’ thinking in this context.
The approach document itself will not impose an obligation on firms to create wind-down plans, but will suggest a logical approach for firms that have decided to engage in such planning. As such, it is not being subjected to cost-benefit analysis. The FCA accepts that there are many different approaches to wind-down planning, so the FCA encourages firms to take this approach document into consideration as a starting point and tailor a model that best suits their circumstances.
The approach document’s main body has two parts: chapter 3 discusses the concept and process of wind-down planning and chapter 4 discusses some more specialised topics, e.g. communications plans. The approach document is accompanied by a Quick Reference Guide which may be particularly useful for smaller firms.
The approach document will become general guidance under section 139A of the Financial Services and Markets Acts 2000 and will take the form of a regulatory guide and will not be part of the FCA Handbook.
The FCA welcomes any comments or observations set out in GC16/5 by 22 July 2016.
View FCA guidance consultation on wind-down planning, 23 May 2016