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

News editor's view: The advice profession is getting bigger, but is it getting better?

News editor's view: The advice profession is getting bigger, but is it getting better?

The news editor's Friday Night Takeaway from 11 September

Isabel Baxter
clock 11 September 2026 • 3 min read
Feel Good Friday: Rosemount renews mental health partnership for advisers

Feel Good Friday: Rosemount renews mental health partnership for advisers

Supporting The Global Returns Project, Grief Encounter, FoodCycle and Verve Foundation

Professional Adviser
clock 11 September 2026 • 1 min read
Is compliance the hidden driver of business value and saleability?

Is compliance the hidden driver of business value and saleability?

'The reality is simple - buyers will pay more for certainty'

Paul Bruns
clock 09 September 2026 • 7 min read