Company Legislation and Governance: UK: FCA session

The Monetary Conduct Authority has printed, for session, proposed steerage for corporations in search of to restrict their liabilities via compromises together with schemes of association, restructuring plans and voluntary preparations: see right here (pdf). Within the session paper, the FCA explains (at para.1.2):

With this steerage we intention to assist corporations perceive what data we’d like and the way we method compromises according to our statutory goals to guard customers and the integrity of markets, with a view to lowering the variety of proposed compromises that we don’t take into account to be applicable. We additionally remind corporations of their regulatory obligations, according to Precept 11, to inform usimmediately and supply related data at an early stageif they’re contemplating proposing a compromise. The place corporations decide there is no such thing as a higher various final result for consumersthan to suggest a compromise, the steerage will assist corporations to suggest acceptable compromises which might be suitable with our guidelines, together with the Ideas for Companies, and statutory goals. Particularly, if corporations do suggest a compromise in respect of redress liabilities, they need to guarantee it’s the finest proposal that the agency could make, which incorporates the agency offering the utmost quantity of funding for the compromise so that customers obtain the best proportion of what’s owed to them.”

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