WDPG App 1 Quick Reference Guide (QRG)

This Quick Reference Guide (QRG) (WDPG Apps 1 to 12) may help solo-regulated firms to put the theory of wind-down planning into practice.

This QRG is not a definitive checklist for wind-down planning as no two firms are identical and the actual wind-down planning process will depend on a firm’s specific business and operating model. This QRG highlights the various components a firm can include when building its wind-down plan.

This QRG is written for all solo-regulated firms, but it may be particularly helpful to those carrying out wind-down planning for the first time.

A firm will have to wind down if continuing its business is no longer viable. A business is no longer viable if the firm does not have adequate resources to meet its regulatory requirements (e.g. the threshold conditions) and contractual obligations.

Well-structured management information allows a firm to identify if there are any emerging risks that may make the firm unviable. This may allow a firm some time to try to recover. If the recovery options fail, then it is almost certain that it is no longer viable.

A firm needs to be careful not to leave the decision to wind down so late that it no longer has adequate resources or liquidity to allow it to wind down in an orderly manner.

The obligations on firms to treat customers fairly or, where applicable, to comply with the Consumer Duty, continue to apply during the wind-down period. This includes, where relevant, considerations relating to client monies and custody assets or the needs of potentially vulnerable customers.

Early engagement with the FCA will help the firm to deal with relevant regulatory issues.