General issues

General issues

This subtopic provides guidance on insolvency issues faced by financial institutions.

Legal reforms

The Financial Services Markets Act 2023 amends the UK’s insolvency arrangements for insurers in order to clarify certain elements, and to expand the protections available to an insurer and its policyholders undergoing insolvency or write-down procedures (see Practice Note: The Financial Services and Markets Act 2023—essentials).

Financial service firms and insolvency

Financial service firms play a key role in the economy and special rules have been created to cater for insolvency events. Part XXIV of the Financial Services and Markets Act 2000 deals with insolvency (ss 355–379A) and this Practice Note considers its interaction with the Banking Act 2009 and related secondary legislation to implement the special resolution regime across a range of business models: Financial services firms and insolvency provisions in FSMA 2000. The administration rules have also been

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