The Financial Conduct Authority (FCA) could up the amount of easily accessible cash advisers have to hold to 10% of their yearly investment advice earnings, in a bid to stop firms failing in the face of a "normal" level of complaints.
The regulator wants to introduce a new capital adequacy metric based on adviser income, alongside a new minimum requirement of £15,000 by June next year and £20,000 from the year after. In a consultation paper out today, the FCA proposed to introduce a charge based on the annual investment business income earned in the previous year. For most investment firms that should hover around 5%, the FCA said. But for those personal investment firms (PIFs) which have permission to trade as principal, hold client money or manage portfolios, the FCA wants the new income based requirement be s...
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