PIFs must hold three months' worth of fixed costs - FSA

Scott Sinclair
clock •

All personal investment firms (PIFs) will have to hold capital resources worth three months of their annual fixed expenditure (the EBR), the FSA confirmed today.

Key stakeholders had been told the regulator would loosen its rules on the EBR, dropping the three months requirement and putting in place more lenient guidelines. But the regulator has opted to stick with its original proposals. All firms will be required to hold the fixed costs in "realisable assets" such as cash. The minimum capital resources threshold for any firm has been set at £20,000. The regulator says, following feedback from the industry, the transition to the new regime has been extended by a year to 31 December 2013, allowing firms more time to comply with the requiremen...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Rathbones donates £35,000 to London Youth

Feel Good Friday: Rathbones donates £35,000 to London Youth

Youth Work Week

Professional Adviser
clock 06 November 2026 • 1 min read
Women in Financial Advice Awards 2026: Winners' gallery

Women in Financial Advice Awards 2026: Winners' gallery

Championing women in advice and financial services

Professional Adviser
clock 05 November 2026 • 1 min read
Women in Financial Advice Awards 2026: All the winners revealed!

Women in Financial Advice Awards 2026: All the winners revealed!

WIFA 2026 awards were presented at a gala dinner on 4 November

Professional Adviser
clock 05 November 2026 • 12 min read