Fresh call to include future income in cap ad calculation

Scott Sinclair
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Advisory firms have issued a fresh plea to the regulator to permit the inclusion of future income in their capital adequacy calculations.

They claim this will further encourage firms to transition to a ‘new model' business, which is partly defined by its ongoing income stream. The plea comes after FSA chief executive Hector Sants hinted the regulator could delay its new prudential rules. As it stands, the rules, which will require personal investment firms to hold capital resources based on their expenditure, are due to be phased in from December. By the end of 2013, firms must hold three months' ‘fixed' expenditure with a £20,000 minimum. Currently, the requirement is £10,000 but the FSA felt firms needed to be b...

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