GC22/1: FSAEU’s approach to compromises for regulated firms

Consultation opens
25/01/2022
Consulatation closed
01/03/2022
01/03/2022

We are consulting on guidance which sets out: how we consider compromises and the factors we consider when assessing them, and our role when a firm proposes a compromise.

Read GC22/1 (PDF)

Why we are consulting  

We are seeing an increase in the number of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities.  

Our aim is to help firms understand what information we need and how we approach compromises in line with our statutory objectives to protect consumers and the integrity of markets, with a view to reducing the number of proposed compromises that we do not consider to be appropriate. 

Who this applies to  

This guidance is aimed at: 

  • firms solely regulated by the FSAEU including those that are part of a dual regulated group  
  • firms that are dual regulated by the FSAEU and PRA from the perspective of conduct regulation

It is also relevant to: 

  • advisers of regulated firms considering compromises (including insolvency practitioners and professional advisers)  
  • trade associations  
  • consumers and consumer protection organisations 

Next steps  

This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.