Capital adequacy rules will stall business development - Sense chief Tim Newman

"The end of 2013 will see the first ratchet of the new capital adequacy requirements, with the minimum capital required increasing to £15,000 or one month's expenditure. Furthermore, over the next two and half years, the minimum will increase to £20,000 or three months' expenditure. There are also new requirements which could increase this figure if the professional indemnity insurance cover held by the firm carries exclusions or excesses above £5,000. For many medium-sized directly-authorised firms, this will present a genuine dilemma. Only in March, LIFT Financial reported that they...