AIFA demands £15,000 capital floor and 2014 deadline

In its response to the FSA's consultation paper, it says the regulator should cut the expenditure-based requirement (EBR) from 13 weeks to six, reduce the amount of capital firms need to hold from £20,000 to £15,000, and extend the transition period by two years to 2014. It adds the FSA should also consider an alternative 'counter-cyclical' capital arrangement, in which firms accrue capital during the good times so it is available in the bad. Additionally, it encourages the FSA to pursue Leaving Resources Behind (LRB), a concept it has considered but is undecided on, which is designed t...