RDR platform paper: New capital adequacy requirements

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The FSA is set to bring in new capital adequacy requirements for platforms, it said today in its platform discussion paper, warning the cost of ongoing business for some players will increase.

It says new capital requirements will both ensure platforms provide an efficient service, better protect consumers and limit the chances of platforms running into financial difficulties. "We will estimate the amount of capital required to be raised by firms and the extent of the benefits associated with them once policy proposals are at a more advanced stage," it says. But it adds it will examine whether higher capital requirements will result in increased barriers to entry in the industry.  

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