Be prepared: What the cap ad changes mean for you

CAP AD

clock •

By 2015, the minimum a firm must hold in realisable capital will double to £20,000, or three months' expenditure. Rebecca Jones investigates how advisers can rise to the challenge.

As the dust stirred by the Retail Distribution Review (RDR) begins to settle, advisers can start looking forward to the Financial Conduct Authority’s (FCA) next regulatory change: capital adequacy. As of 31 December this year, the minimum amount of ‘ready realisable’ capital advisory firms must hold will rise from £10,000 to £15,000, or one month’s fixed expenditure. From December 2014, this will increase to two months’ fixed expenditure, still with a minimum of £15,000, with the final hike coming in December 2015 to three months’ fixed expenditure or a minimum of £20,000. The chan...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

WIFA 2026 headline sponsor video: LV= COO Anita Fernqvist talks female representation in advice

WIFA 2026 headline sponsor video: LV= COO Anita Fernqvist talks female representation in advice

'Different perspectives around the table bring breadth of thinking'

Professional Adviser
clock 03 November 2026 • 1 min read
FCA responds to Treasury Committee concerns over potential Budget leak

FCA responds to Treasury Committee concerns over potential Budget leak

Nikhil Rathi responds

Isabel Baxter
clock 03 November 2026 • 3 min read
Young adults lacking mental capacity will gain access to Child Trust Funds

Young adults lacking mental capacity will gain access to Child Trust Funds

Government proposals to benefit up to 126,000 young adults

Sophia Panayi
clock 03 November 2026 • 3 min read