Threesixty condemns capital adequacy 'gold plating'

Under plans confirmed by the FSA recently, Personal Investment Firms (PIFs) must now have the equivalent of three months annual expenditure in capital reserves, with the minimum requirement for all firms jumping from £10,000 to £20,000. A review of the rules found investment advisers and networks will need to raise an additional £600m to £850m capital by 2013, with six to seven individual businesses requiring over £20m. Ingram says the requirements will have a big impact on adviser firms and limit their ability to expand. "The money can't be used for any kind of growth such as IT spen...