Capital adequacy rules 'punish' pro-RDR firms - IFP

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The FSA's proposed capital adequacy regime punishes firms which are attempting to move towards the post-RDR business model, according to the Institute of Financial Planning (IFP).

In a response to the regulator's consultation on the proposals to increase capital requirements for personal investment firms (PIFs), the professional body has urged the FSA to consider a regulatory dividend for firms investing in making their business RDR compliant. "The current proposals potentially penalise those firms who have invested, and those that continue to invest in changing their business models to a more sustainable, consumer friendly model," the IFP says. Adviser firms that move away from upfront commissions, engage with the TCF initiative, resource proper research capabil...

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