RDR: Minimum capital for investment advisers doubles

In a preview of the prudential requirements for Personal Investment Firms (PIFs) review, the FSA has called for an extension of the Expenditure Based Requirement, to be based on three months of relevant annual expenditure. It also raised the minimum capital floor from £10,000 to £20,000 for all firms. Set to be fully unveiled on Thursday, the FSA says the new additional capital requirement is the first change to the minimum level in 14 years and will ensure a "level playing field" between small and large firms. On Professional Indemnity Insurance (PII), the FSA mandates a sliding scale ...