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...
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