Financial services firms and insolvency

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Financial services firms and insolvency
  • Financial services firms and insolvency provisions in FSMA 2000
  • Identify the firm’s appropriate regulator
  • Voluntary arrangements
  • Administration and receivership
  • Administration
  • Receivership
  • Winding up and bankruptcy petitions
  • Voluntary winding up
  • Winding up petitions
  • More...

Financial services firms and insolvency

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Financial services firms and insolvency provisions in FSMA 2000

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

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