The following Financial Services guidance note provides comprehensive and up to date legal information covering:
The provisions in Part XXIV of the Financial Services and Markets Act 2000 (FSMA 2000) allow the regulators to be involved in insolvency related proceedings against firms and individuals. These rights arise both in respect of authorised firms and recognised investment exchanges, as well as those conducting regulated activities in contravention of the general prohibition (FSMA 2000, ss 19–20). Each section in Pt XXIV indicates the parameters as to when rights accrue, in some cases rights accrue to more than one regulator. Seeking insolvency orders is an important process for the regulators, particularly against firms carrying out unauthorised business. Insolvency proceedings are used against insolvent firms and individuals as well as those which are not technically insolvent but where it would be just and equitable for the firm to cease business.
The sections in FSMA 2000 should be considered in the wider context of the reforms to the treatment of insolvent financial institutions introduced following the financial crisis, in particular:
the special resolution regime under the Banking Act 2009 (BA 2009)—for information, see Practice Notes: Special resolution regime for banks and building societies—rationale, scope, application and interpretation, Special resolution regime options, Powers of the authorities under the special resolution regime and Safeguards for shareholders, creditors and counterparties under the special
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234