On 5 July 2022, the Financial Conduct Authority (FCA) published guidance on Schemes of arrangement (as well as restructuring plans and voluntary arrangements) (FG22/4) following their significant concerns about these tools being proposed and used by firms to avoid paying customers redress (see: LNB News 05/07/2022 72, News Analyses: New FCA draft guidance sets out an interventionist approach to restructuring plans, schemes of arrangement and CVAs and FCA consultation on restructuring guidance—don't confuse the devil with the detail).

Practitioners will need to take note of the FCA guidance where the proposed scheme involves regulated companies (ie firms authorised under the Financial Services and Markets Act 2000 (FSMA 2000) and firms authorised or registered under the Payment Services Regulations 2017 (PSRs 2017), SI 2017/752 or Electronic Money Regulations 2011 (EMRs 2011), SI 2011/99).

However, this FCA guidance does not apply:

1. •

   to schemes/restructurings of with-profits funds (investment funds typically offered by insurance companies)

2. •

   retrospectively to any compromise where the firm has issued a practice statement letter (PSL) (in respect of schemes and restructuring plans) to its