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EG 13.2 1The FCA’s general approach to use of its powers and rights in insolvency proceedings

EG 13.2.1RP

1In using its powers to seek insolvency orders the FCA takes full account of: the principle adopted by the courts that recourse to insolvency regimes is a step to be taken for the benefit of creditors as a whole; and the fact that the court will have regard to the public interest when considering whether to wind up a body on the grounds that it is just and equitable to do so.

EG 13.2.2RP

1The FCA will consider the facts of each particular case when it decides whether to use its powers and exercise its rights. The FCA will also consider the other powers available to it under the Act and to consumers under the Act and other legislation, and the extent to which the use of those other powers meets the needs of consumers as a whole and the FCA's statutory objectives. The FCA may use its powers to seek insolvency orders in conjunction with its other powers, including its powers to seek injunctions.

EG 13.2.3RP

1Decisions about whether to apply to the civil courts for insolvency orders under the Act will be made by

the RDC Chairman or, in an urgent case and if the Chairman is not available, by an RDC Deputy Chairman. In an exceptionally urgent case the matter will be decided by the director of Enforcement or, in his or her absence, another member of the FCA's executive of at least director of division level.

EG 13.2.4RP

1An exceptionally urgent case in these circumstances is one where the FCA staff believe that a decision to begin proceedings

  1. (1)

    should be taken before it is possible to follow the procedure described in paragraph 13.2.3; and

  2. (2)

    it is necessary to protect the interests of consumers or potential consumers.