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Compromises of FCA-regulated firms: FCA FG22/4 notification and information checklist for schemes of arrangement, restructuring plans, CVAs and IVAs (UK)

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FCA involvement in compromises of regulated firms

When a scheme of arrangement, restructuring plan, company voluntary arrangement or individual arrangement is put forward in relation to a regulated firm (defined below), the Financial Conduct Authority (FCA) should be engaged at the outset. The FCA acts as the conduct regulator for UK financial services firms and markets. It is obliged under section 1B of the Financial Services and Markets Act 2000 (FSMA 2000) to advance specified objectives, including the consumer protection objective.

The FCA states that its statutory aims are to secure an appropriate level of consumer protection and to safeguard and strengthen the integrity of UK financial markets, with the intention of limiting the number of proposed compromises (via a scheme of arrangement, restructuring plan, company voluntary arrangement or individual arrangement) it considers unsuitable (see FG22/4, para 1.2). On 5 July 2022, the FCA issued guidance on compromises by regulated firms (FCA Guidance FG22/4, July 2022, updated January 2024), prompted by serious concerns that these mechanisms were being proposed and used by firms to sidestep paying customer redress (see: LNB News 05/07/2022 72)...

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Web page updated on 20/05/2026

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