Small firms panel warns of cap ad threat to advisers

In its latest annual report, the SBPP, which represents the views and interests of smaller regulated firms to the FSA, explained how the convergence of issues in 2012/13, including the RDR and Solvency II, could overburden some businesses. It said: "Small advisory businesses may become financially unviable as changes in capital adequacy rules will require owners to increase their firm's capital, which may then be wiped out by the need to pay significant contributions to the Financial Services Compensation Scheme (FSCS). "We perceive an asymmetry of risks between large firms and smalle...