FSA defers capital adequacy rules by two years

The original rules, published in November 2009, were due to be phased in over two years, commencing on 31 December this year with the full requirements in place by end 2013. However, the phasing in of the new rules firms will now commence on 31 December 2013 with the full requirements in place by end 2015. Under the new prudential regime for PIFs, firms must hold capital resources equal to at least three months of their annual fixed expenditure in readily-realisable assets, such as cash. The minimum capital resource threshold for any firm will be set at £20,000, double the previous...