Raising Standards for consumers - Compliance and Enforcement report 2020 to 2021
Orderly close-down of businesses
Where there is a planned wind down of a business, or it becomes apparent to an operator that long term viability of the business is in jeopardy, operators and PML holders ought to be aware that our focus will be on making sure licensees are treating consumers fairly.
- appreciate the importance of letting the Commission know in advance of the intended wind down date and provide us with their proposed close-down and customer communications plan.
- familiarise themselves with our guidance setting out our expectations from operators leaving the market.
- be aware that to protect future consumers if a licensee does not provide an orderly close-down, the Commission reserves the right to take action against the personal licence holders. The Commission is likely to consider any adverse outcomes of a licensee should any individuals involved apply for a new operating licence or for personal licences. We may also, where applicable, share the information with other regulators.
- be aware that licensees segregating customer funds as part of medium and or high customer protection measures must ensure that the bank accounts holding those funds are ring fenced and not used to pay business expenditure.
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Last updated: 29 June 2023
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