1Where a petition has been presented for the winding up of a body, the court may appoint a provisional liquidator in the interim period pending the hearing of the petition. An appointment may be sought and made to:
permit the continuation of the business for the protection of consumers; or
secure, protect, or realise assets or property in the possession or under the control of the company or partnership (in particular where there is a risk that the assets will be dissipated) for the benefit of creditors or consumers.
1In cases where it decides to petition for the compulsory winding up of a body under section 367 of the Act, the FCA will also consider whether it should seek the appointment of a provisional liquidator. The FCA will have regard, in particular, to the extent to which there may be a need to protect consumers' claims and consumers' funds or other assets. Where the FCA decides to petition for the compulsory winding up of a company or partnership on the just and equitable ground and where the company or partnership is solvent but may become insolvent, the FCA will also consider whether the appointment of a provisional liquidator would serve to maintain the solvency of the company or partnership.