The industry and the sector it operates in and the impact it may cause to the markets when it winds down.
Applicable legal, regulatory and insolvency requirements. These will include, among others, directors’ duties under company law, data protection requirements, employment law and FCA filing requirements.
Organisational structure and operating model.
Internal processes, systems and human resources.
Processes or systems that are interconnected and/or outsourced.
Existing contractual commitments, such as with employees or third parties. In particular, there may be restrictions or penalty clauses for breaking contractual relationships.
Possible sale of all or part of the business and any applicable regulatory processes that may impact the timeline, such as a change in control application. It should also consider whether any arrangements need to be made for the migration of clients and how this will be communicated to these clients.
Orderly vacation of premises and disposal of fixed assets.
After conducting its assessment a firm can work out an outline of sequenced actions in a wind-down scenario and how long each action will take. The specifics will vary from firm to firm but some possible considerations include the following.
How would the firm announce the wind-down decision and manage communication with stakeholders?
Who needs to be available to assist the winding down?
What systems (e.g. IT systems) need to be available for the wind-down?
When might the firm need to engage professional advisors, such as an insolvency practitioner, to support the wind-down process?
At the end of such an analysis, the firm will be better able to estimate the length of the wind-down period.