Small firms panel warns of cap ad threat to advisers

clock

The Small Businesses Practitioner Panel (SBPP) has warned small financial advisory firms may become "financially unviable" due to increased capital adequacy requirements and rising levies.

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...

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 Regulation

PIMFA publishes non-financial misconduct guidance

PIMFA publishes non-financial misconduct guidance

In partnership with CII, CISI and Clyde & Co to help firms navigate FCA’s updated rules

Sophia Panayi
clock 23 June 2026 • 2 min read
FCA set to raise market abuse penalties and bring crypto into scope

FCA set to raise market abuse penalties and bring crypto into scope

Minimum fine raised

clock 16 June 2026 • 2 min read
Director jailed for near £9m investment fraud

Director jailed for near £9m investment fraud

Declan Nowell sentenced for ‘Ponzi-style’ investment scam

Sophia Panayi
clock 01 June 2026 • 2 min read