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

UK financial services M&A outpaces global deals in H1 as value surges eightfold

UK financial services M&A outpaces global deals in H1 as value surges eightfold

EY analysis

clock 07 July 2026 • 2 min read
Vanguard finds Gen Z leads investing shift as it prepares targeted support offering

Vanguard finds Gen Z leads investing shift as it prepares targeted support offering

Firm received FCA approval in April

Sophia Panayi
clock 07 July 2026 • 3 min read
Treasury Committee calls out 'mis-sold' student loans

Treasury Committee calls out 'mis-sold' student loans

An ‘unfair and broken system’ as report urges government to reverse frozen threshold

Sophia Panayi
clock 07 July 2026 • 4 min read