The Financial Services Authority (FSA) has identified 56 firms that are not complying with their financial resources requirements, with combined financial deficits of £4.3m.
As part of a second phase of research into financial resources and compliance with the financial resources rules, the FSA used a random sample of firms and a business intelligence report to identify 56 firms that are not complying with the requirements.
It says those firms have combined financial deficits of £4.3m.
The most common reasons given for not complying were lack of understanding of how to calculate financial resources and poor advice given by some professional advisers.
The FSA has therefore updated its online good practice guide on financial resources, which gives examples to help firms calculate their financial position.
It has also added a section on its website giving hints and tips on appointing an accountancy firm.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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