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

Most of our industry has forgotten what advisers actually do

Most of our industry has forgotten what advisers actually do

‘Providers have a responsibility to better support advice firms’

Mark Sanderson
clock 16 March 2026 • 3 min read
Government unveils changes to FOS operations after landmark review

Government unveils changes to FOS operations after landmark review

New ten-year limit for bringing complaints

Isabel Baxter
clock 16 March 2026 • 5 min read
Feel Good Friday: Wise Investment employee takes on the Great Wall of China for charity

Feel Good Friday: Wise Investment employee takes on the Great Wall of China for charity

Raising funds for Katherine House Hospice

Professional Adviser
clock 13 March 2026 • 1 min read