Finalised Guidance for Insolvency Practitioners on How to Approach Regulated Firms

Finalised Guidance
Guidance for insolvency practitioners on how to approach regulated firms FG21/4 May 2021 1 Introduction
1.1 Minimising the impact of a regulated firm failure is a key priority for us. While we cannot
stop firms failing, we aim to help minimise disorderly failures that cause serious harm to both consumers and markets. This involves working with insolvency practitioners (IPs) appointed over regulated firms to reduce such harm where possible. By ‘regulated firms’ we mean firms authorised under the Financial Services and Markets Act 2000 (FSMA) and firms authorised or registered under the Payment Services Regulations 2017 (PSRs) or Electronic Money Regulations 2011 (EMRs).
1.2 If an IP is appointed over a regulated firm, the IP takes control of the firm which
continues to have regulatory obligations. It is therefore important that the IP ensures compliance with our rules and guidance and relevant legislation which aim to achieve better outcomes for consumers and market participants following a firm failure.
1.3 This guidance provides our view of how an IP should ensure regulated firms meet their
ongoing financial services regulatory obligations following appointment. We supervise regulated firms, including those in insolvency proceedings, while they continue to be authorised or registered by us. We are not the regulatory authority for IPs and IPs generally act as officers of the court. We have therefore engaged with the recognised professional bodies and Insolvency Service on this guidance.
1.4 This guidance is aimed at IPs 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 is the Financial Conduct Authority Page 1 of 48