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
Teneo Insights Series UK: What is Ahead for the Consumer in 2023?
The UK narrowly avoided recession in 2022, and the most recent forecasts for 2023 suggest a shallower recession than was anticipated last November. Although inflation is forecast to fall, the UK economy still faces a number of challenges, including rising interest rates, wage pressures driven by inflation and a tight… Read More
2023 UK Economic and Consumer Outlook
The UK narrowly avoided recession in 2022, and the most recent forecasts suggest low/stagnant growth, with the UK ultimately avoiding a technical recession that appeared inevitable in November when the country was still reeling from the impact of the previous Government's "mini budget." While inflation is forecast to fall, we… Read More
UK Independent Hospitals: The Next Challenge
The UK private healthcare market has seen a rebound in 2021 and 2022 post-Covid-19, driven in part by a surge in self-pay patients. A record number of people are opting to pay for their treatment privately to avoid long wait times in the NHS and access the quality and expertise… Read MoreOur Services
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.
Case Studies
Project Genesis
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.
Project Umbrella
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.
Project Minerva
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.
Project Confidential
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.
We bring:
- 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.
