The FCA are consulting on non-handbook guidance for insolvency practitioners ('IPs') on how to approach insolvencies of regulated firms. The proposed guidance aims to help IPs comply with our rules and guidance and relevant legislation which aim to achieve better outcomes for consumers and market participants following the failure of a regulated firm.

The proposed guidance for IPs is welcomed. We consider Annex 1 and Annex 2 to be useful and informative for all IPs, and their staff, when dealing with the insolvencies of regulated firms.

Whilst the guidance is welcomed, we do highlight a number of areas where a tightening of the guidance may avoid confusion for stakeholders and IPs and may more accurately reflect what is practically possible in insolvency situations, which we address in our response available for download below.