As if the RDR wasn't enough, advisory firms also have new capital adequacy requirements to contend with this year. Laura Miller finds out what advisers are doing to build up their reserves.
The Financial Services Authority’s (FSA’s) new rules on capital adequacy have been a long time coming. The original rules, published in November 2009, were due to be phased in over two years, with the full requirements in place by end 2013, but the regulator deferred their introduction for two years to allow firms extra time to prepare. By 31 December this year, all firms must have in place capital resources worth at least one month of their annual fixed expenditure in realisable assets such as cash. By next year they will have to hold two month’s expenditure, and by 2015 the requi...
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