Financial Services Solvent Wind Down
Whether preparing a solvent wind down plan for regulatory reasons or winding down a non-core business, having experienced professionals assist in the planning, preparation and execution will help maximise shareholder return and identify and avoid the common issues.
Our professionals have advised many Financial Services firms on solvent wind-down projects and subsequently acted as liquidators of the residual entities. We are the preeminent team across Europe and have worked on several ground-breaking projects in Europe over the past decade.
We also work for the regulators reviewing Solvent Wind Down Plans and assist firms to bring their plans up to standard, particularly when stressed and under regulatory scrutiny.
Latest Financial Advisory Insights
We advise across the whole spectrum of Financial Services (“FS”) solvent wind down activities from preparing Solvent Wind Down Plans (“SWDP”) to meet regulatory requirements, through options analysis for non-core business, to wind down implementation and solvent liquidation.
We have worked on most of the high-profile solvent wind downs across Europe over the past decade, in many cases employing innovative approaches to maximise the value of the outcome for shareholders.
Solvent Wind Down
- We led the wind down and solvent liquidation when Standard Chartered decided to exit from its Swiss private banking. This involved analysing the client and asset base to identify optimal wind down approaches (a combination of transfer to other booking centres, portfolio sale, transfer to the Court and account closure).
- Introduced potential buyers for portfolio sale. Led the regulator engagement plan and activities. Developed a bespoke, single version of the truth database to track and direct activity.
- Optimised the wind down of the organisation and infrastructure, remaining fully compliant with regulatory requirements as AuM decreased.
- Resolved legacy issues including established archiving and retrieval capability and acted as liquidator to achieve dissolution.
Market Exit Contingency Plan
- The client wished to exit from its Slovenian subsidiary and was investigating a share sale option. In case a share sale was not possible (e.g. if the buyer chose to purchase only part of the business), the bank engaged us to develop a contingency plan to meet regulatory requirements.
- We reviewed the balance sheet and, on an asset class basis, determined the optimal wind down approach and estimated the likely timeline and cost.
- We reviewed the operational infrastructure and prepared an outline plan for wind down with cost estimates.
- We prepared a fully costed contingency plan and supporting Board pack.
- The Bank eventually successfully executed a share sale and the contingency plan was never implemented.
Good Bank/Bad Bank Separation
- As a requirement to acquire a Swiss private bank, our client had been given an aggressive timeline by the regulator to restructure it and initiate wind down.
- We were appointed as lead advisor and led the transaction which transferred the good assets and clients to the parent and left the residual with the wind down entity.
- We undertook the analysis of the residual book and the identification of potential problem areas, designed the ongoing operating model and prepared the master agreement and service agreements to enable the residual bank to operate with no staff.
- We led the engagement with the regulator and obtained its approval for the set up.
- We supported the development of the liquidation balance sheet and the ongoing regulatory reporting.
s.166 Review of Solvent Wind Down Plan
- Digital bank offering loans, credit cards and deposits.
- Engaged by the PRA and the firm under the s166 framework to review, amend and supplement the firm’s existing solvent wind down plan to ensure that it was actionable.
- A collaborative approach was taken, working closely with the firm to develop an implementable solvent wind down plan that met PRA criteria, and to then support assertions within the plan with independent analysis provided to the PRA.
- Assisted with all parts of the solvent wind down plan including portfolio exits, employees, operational actions, stakeholder communications, possible financial outcomes and risk management.
- This work was delivered at pace, taking three weeks from inception to initial reporting, with a further phase of additional analysis.
When to Reach Out
The Teneo team brings a wealth of experience from well-seasoned industry experts who have been involved in most of the major FS wind downs across Europe in the past decade.
- the leading specialist FS team;
- with global experience;
- who have led ground-breaking restructuring projects across Europe;
- and have been engaged by the regulators to critique Solvent Wind Down Plans.
Call us when:
- you’re thinking of exiting a business;
- you’re planning to exit a business;
- you need a wind-down contingency plan when selling a business;
- you or your regulator would like a critique of your Solvent Wind Down Plan;
- you need to develop or enhance your SWDP for regulatory or internal reasons.
Details of the entity providing services, legal and regulatory information in respect of the Teneo entity are also included in our engagement letters.
Teneo Financial Advisory (DIFC) Limited is authorised and regulated by the Dubai Financial Services Authority for the provision of Advising on Financial Products or Credit and Arranging Credit or Deals in Investment services
Specific information relating to our regulated entities which provide services to clients is detailed below:
|Registered Name||Legal Form||Registration Location and Reference||Registered Office||Data Protection||Regulator(s)||Professional Indemnity Insurance|
|Teneo Financial Advisory Limited||Limited Company||England & Wales, 13192958||5th Floor, 6 More London Place, London, SE1 2DA||UK - ZA920639||The Institute of Chartered Accountants in England and Wales (“ICAEW”) C008873136. All insolvency practitioners are licenced by the ICAEW. ICAEW Designated Professional Body licence for a range of investment business activities.||Details of the professional indemnity insurer can be provided on request.|
|Teneo Securities LLC||Limited Liability Company||USA - Delaware||280 Park Avenue, 4th Floor, New York, NY 10017||N/A||Financial Industry Regulatory Authority (FINRA) #151256. Securities and Exchange Commission (SEC).||Details of the professional indemnity insurer can be provided on request.|
Teneo Securities LLC’s Business Continuity Planning
Teneo Securities LLC has developed a Business Continuity Plan (“BCP”) on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our BCP.
The Firm has developed and installed a BCP in the case of any business disruption that causes the Firm to have limited or no communications with its employees or customers. Our plan anticipates two types of business disruptions, internal disruptions which affect only our Firm’s ability to do business (such as a fire in our building) and external disruptions that prevent the operation of securities markets or other firms (such as natural disasters or acts of war).
The Firm intends to stay in business during both internal and external disruptions due to the fact that the Firm employees can conduct Firm related business from alternate off-site physical locations and the Firm maintains an alternate location for the maintenance of its books and records. We anticipate that the Firm will recover from internal business disruptions within 24-48 hours. An outage due to an external business disruption may be longer and is beyond the control of the Firm. However, the Firm will endeavor to resume business as soon as it is possible for the Firm to establish business operations from alternate off-site physical locations.
The Firm’s BCP specifically addresses the following areas related to Firm operations:
- Data back-up and recovery (hard copy and electronic);
- All mission critical systems;
- Procedures to test and determine the Firm’s ability to do business (i.e., financial and operational assessments);
- Alternate communications between customers and the Firm;
- Alternate communications between the Firm and its employees;
- Alternate physical location of employees;
- Critical business constituent, bank, and counter-party impact;
- Regulatory reporting; and
- Communications with regulators.
If you have questions about our business continuity planning, you can contact us (212) 886-1600.