Our regulator, the Financial Conduct Authority, requires all financial institutions to have a plan for an orderly wind down should a regulated business cease to be in business. Without such a plan there could be consequences for lenders where loans were not monitored and interest and capital collected.
To mitigate this unlikely situation we have engaged Kingston Smith LLP a top 20 UK accountancy firm with whom we have implemented a ‘living will’ arrangement.
Recovery and Reconstruction Plan (“Living Will”)
A Living Will generally comprises:
(a)a recovery plan setting out actions for a firm to recover from financial stress;
(b)resolution planning, providing authorities with information and a roadmap to resolve a failed financial institution.
Should our company become in a position where we cannot continue in business, Kingston Smith would administer the company in an orderly wind down process and collect interest and capital to be redistributed to loan holders.