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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

WDPG App 6.1 Formulating a governance process for winding down

WDPG App 6.1.1 G

1The governing body ultimately owns any documented governance process for winding down. It may stipulate a mechanism to determine when to invoke wind-down, typically via monitoring key management information to detect the early warning signs of a potential wind-down situation. The governing body may also specify a reporting line to ensure that senior management and the governing body are given this information without delay, as well as all further information and data once the wind-down is triggered.

WDPG App 6.1.2 G

In a time of financial stress, clear-headed and prompt decision-making is essential. It is up to the governing body of a firm to make such a decision, but it may have to consult its parent if it is part of a larger group.