The FCA have required enhanced scope Firms to have a robust wind down plan in place since 2016. More recently we have seen the FCA ask other Firms to provide a wind down plan as part of an application for Part IV Permission. The FCA in Consultative Paper CP23/24 Chapter 6 are looking to review the prudential requirments for Personal Investment Firms. Part of the review includes a requirment for Firms to have a Wind Down plan.
Wind-down planning is the process in which the firms governing body identifies the steps and resourses it needs to wind down its business - particularly in a situation where resources are limited, and evaluates the risks and impact of a wind-down and considers how to mitigate them.
Most business owners do not set up a business with a plan to fail - but there is some merit in having a plan - perhaps for retirement? We would also suggest that having a Handover Pack too would be a smart move.
If you would like a copy of the Wind Down Planning Guide or help with drafting your plands then do get in touch ian@compliancealliance.net