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PIMFA WEEKLY NEWS BULLETIN | 19 April 2022 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest news impacting you and your firm.
FCA publishes Thematic Review (TR22/1) on Wind-Down Planning
On the 11th April, the FCA published a piece of thematic work on wind-down planning across a number of different business models. The focus was on liquidity needs during wind-down and examined firms' intra-group dependencies and wind-down triggers.
The following key observations were made: •
Significant further work is needed to ensure that the wind-down planning of firms is credible and operable. This particularly relates to liquidity and cashflow modelling, intra-group dependency and wind-down trigger calibration.
•
Firms should consider the impact liquidity needs in wind-down have on their assessment of resource adequacy, their risk appetite and point of non-viability.
•
Testing the outcomes of wind-down planning is the best way of showing the firm’s Board/ governing body, as well as the FCA, that the plan and process is credible and operable.