On 3 March 2023, the FCA issued a letter of concerns[1] in relation to Morses Club's proposed Scheme of Arrangement, ahead of the firm attending Court on 7 March to seek views of the court before proceeding to the next stage of the process. The firm said they would consider the concerns and whether improvements can be made.
The firm attended a second convening hearing at court today with some revisions made to the Scheme proposal, addressing some of the FCA’s concerns including changes made to the proposed communications to customers.
The FCA wrote a letter to the firm ahead of today’s hearing acknowledging the actions taken by Morses Club and the improvements these amendments would make to the proposed Scheme, if they work as described. The FCA will assess the revised proposal further as more detail is provided ahead of the sanction hearing, and has reserved its right to take further action if necessary.
In the interests of transparency and giving all Scheme creditors and wider stakeholders an opportunity to better understand the FCA’s position, the FCA has today published its letter[2].