Read our Finalised Guidance: FG25/2 (PDF)[1]

Read our Feedback Statement: FS25/3 (PDF)[2]

This guidance aims to help IPs comply with our rules and guidance and relevant legislation, to achieve better outcomes for consumers and market participants when a regulated firm fails.

Who this applies to 

The guidance is aimed at IPs appointed (or looking to be appointed) over regulated firms, including provisional and interim appointments (such as a provisional liquidator). 

It may also be of interest to: 

• the Official Receiver
• professional advisers
• trade associations
• firms
• consumers 

What we did 

In 2024, we consulted (GC24/1[3]) on proposed updates to our guidance to: 

• reflect changes, such as the Consumer Duty
• improve clarity
• provide more information 

We received 6 responses, including from the insolvency trade body R3, the Insolvency Lawyers’ Association and IP firms. 

For more detail on the feedback, read our Feedback Statement[2]. 

Original guidance + 

In 2020, we consulted on our proposed guidance in GC20/5[4] and asked for feedback. We received 22 responses, including from IPs, regulatory bodies, trade associations, consumer groups and individuals. 

Respondents largely supported the proposed guidance with several noting their agreement that it was necessary and clearly set out.  

Although no respondents disagreed with the guidance, some made minor suggestions and comments in certain areas. We used this feedback, set it out in our Feedback Statement[5], to shape the finalised guidance.

Background 

If an IP is appointed over a regulated firm, the IP takes control of the firm which continues to have regulatory requirements and responsibilities.  

While we cannot stop firms failing, we aim to help minimise disorderly failures that cause serious harm to both consumers and markets. This involves working with IPs appointed over regulated firms to reduce such harm where possible. 

We supervise regulated firms, including those in insolvency proceedings, while they continue to be authorised or registered by us. This guidance is our view of how an IP should ensure regulated firms meet their ongoing financial services regulatory obligations following appointment. 

Next steps 

This guidance takes effect from 28 April 2025.

IPs appointed over regulated firms should follow it to help them ensure firms meet their ongoing regulatory obligations following appointment.