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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.