FSA set to loosen capital requirements rules

In a reworking of its Review of the Prudential Rules for Personal Investment Firms, the regulator will also give principals an extra year - to the end of 2013 - to implement the requirements. In its November 2008 consultation paper, the FSA proposed extending the Expenditure Based Requirement (EBR) to all firms based on three months of annual fixed expenditure and raising the minimum capital resources level from £10,000 to £20,000 for all firms. The FSA stopped collecting feedback in March and will publish a policy statement before the end of the year. Critics say the EBR element o...