The FCA has issued guidance on its approach to schemes of arrangement and other compromises for regulated firms (FG22/4). The guidance clarifies how the FCA approach compromises in line with its statutory objectives to protect consumers and the integrity of markets. The new guidance aims to help regulated firms and their advisers understand the FCA’s role, the information firms need to provide to the FCA and the factors the FCA will consider when assessing compromises and deciding if and what actions to take.

The guidance is targeted at firms that are solely regulated by the FCA and firms that are dual regulated by the FCA and PRA from the perspective of conduct regulation. It is also relevant to advisers of regulated firms considering compromises (including insolvency practitioners and professional advisers), trade associations, consumers and consumer protection organisations.

The guidance took effect from 5 July 2022.