Advisory group LIFT-Financial is planning to expand through its self-employed adviser arm LIFT-Advice because the incoming capital adequacy requirements for this side of the business are less onerous.
LIFT-Financial Group, which last year had an annual turnover of £2.9m - with £2.7m coming from the employed adviser business LIFT-Financial - said its "biggest problem" with expansion is the Financial Services Authority's (FSA) capital adequacy hike. Under FSA rules, by 31 December 2015, all personal investment firms will have to hold capital resources worth at least three months of their annual fixed expenditure in realisable assets such as cash. The change is being phased in so firms must hold one month's expenditure this year, two month's next year, and three month's by 2015. Th...
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