'Old school' IFAs tipped to benefit from cap ad move

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Proposals for firms' capital adequacy (CA) requirements will only favour those "old-style" advisers the FSA and IFP are trying to leave behind, according to threesixty.

The IFA support services provider says new model firms that employ full-time advisers and back-office staff will be hit hardest as they are forced to up CA from £10,000 to three months' expenditure, which may well exceed the £20,000 minimum. It says those practices with part-time staff and self-employed advisers, which threesixty partner David Ingram says still represent the "bulk" of the adviser community, will not see a huge change to their CA as they do not have huge running costs. An FSA consultation paper on the prudential regime for personal investment firms (PIFs) suggests upping...

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