FCA Regulation & Wind-Down Planning – Are You Prepared?
Join Head of Insurance Intermediaries Paul Goldwin and the MBL at their seminar on Friday 13 October – FCA Regulation & Wind-Down Planning – Are You Prepared?
A wind-down plan is compulsory for all regulated firms, not just those in financial distress. The regulator requires all firms to prepare well thought out plans to demonstrate that they will be able to exit the market in an orderly manner without causing undue harm to customers or markets.
The FCA have mentioned that they will continue to assess firms’ financial resilience against their minimum standards and are aware that this is an area of weakness for many firms.
With this in mind, together with the MBL, Paul Goldwin has put together a full day course, aimed at FCA regulated firms who may have not yet put together a wind down plan or need assistance with the formulation and development of a wind down plan.
The course will cover the following:
- FCA 2021/22 business plan – overarching priority – financial resilience and resolution
- FCA expectations and monitoring
- FCA expects firms to have a well thought out wind down plan to demonstrate how they will exit the market in an orderly manner without causing undue harm to customers and markets
- FCA guidance:
- WDPG June 2020 (refreshed August 2021)
- Interaction with threshold condition 2.4
- Principle 4 (PRIN 2.1)
- WDPs – general principles
- WDP – structure:
- Choice and evaluation of trigger event
- Plan to steer firm in orderly manner
- Assessment of financial/non-financial resource requirements
- Process for identifying and mitigating material risks/obstacles to orderly wind down
- In practice:
- Financial projections/modelling
- Detailed practical narrative plan
- FCA thematic – high level review:
- Early stage of maturity
- Well short of FCA’s minimum standard
- Liquidity considerations
- Intra-group dependencies
- Shortcomings with wind down triggers
- FCA – multi survey review:
- General results
- What constitutes good practice?
- Examples of poor practice
- FCA conclusions and plans going forward – are you prepared?