WDPG 1 Introduction

An effective wind-down plan aims to enable a firm to cease its regulated activities and achieve cancellation of its permission with minimal adverse impact on its clients, counterparties or the wider markets. This includes scenarios where the firm undertakes a strategic exit as well as unexpected crisis or insolvency that makes the firm unviable.

A wind-down plan can also help a firm to assess if it would have adequate resources (e.g. capital, liquidity, knowledge and manpower) to wind down in an orderly manner, especially under challenging circumstances.

The Quick Reference Guide at WDPG Appendices 1 to 12 is intended to help firms (especially those of a smaller size or a simpler operating model) to apply the concepts to develop an effective wind-down plan.