The Association of IFAs (AIFA) says it is "absolutely vital" the FSA devises a fair method for firms calculating their Expenditure Based Requirement (EBR).
It argues variations in business model - some advisers are paid a salary, others commission - and methods - some firms outsource compliance, others do not - mean it will be difficult for the regulator to determine what constitutes a 'fixed' expenditure. In today's Review of the prudential rules for Personal Investment Firms (PIFs), the regulator said all firms will have to hold capital resources worth three months of their annual fixed expenditure. But it points out it "did not intend" to create different capital resources requirements for firms with different business models and of d...
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