Analysts say it is too early to tell whether advisers will draw on capital adequacy to keep their firms afloat after the regulator announced a relaxation on firms’ access to cash reserves.
The Financial Conduct Authority (FCA) On Thursday (26 March) said it intended to "provide flexibility to regulated firms" to continue operating by drawing on "capital and liquidity buffers" if necessary. "Firms who have been set buffers can use them to support the continuation of the firm's activities," the FCA said. The watchdog's statement was directed at solo-regulated firms and outlined ways such businesses could avoid collapse, given current market conditions. The lang cat consulting director Mike Barrett said he did not think it was likely for advice firms to be resorting to ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
