KPMG warns asset managers falling 'well short' of FCA's capital adequacy requirements

The group's report Picking up the Pace, released today, shows asset managers have been forced to cancel dividends, ask parent companies for cash injections and seen share prices tumble following an increased capital requirement. For a mid-sized UK firm, this 82% additional capital equates to around £31m. As part of European regulatory requirements in response to the post-financial crisis Basel accords, asset managers - as well as other financial groups - must assess their liabilities and hold an appropriate amount of capital on balance sheets in case of a business crisis. In the UK, a...