Although new changes to the capital adequacy rules do not take effect until 30 June, Richard Nuttall strongly recommends firms review their financial position at the earliest time possible in case action is needed
It is important all investment firms have a clear understanding of the upcoming changes to the prudential requirements of the Financial Conduct Authority and the effect this can have on the business. The ‘new' capital adequacy requirements heading our way were outlined in PS15/28: Capital resources requirements for personal investment firms (PIFs): feedback on CP15/17 and final rules. The changes mean capital resource requirements will be as follows: * 5% of investment income plus 2.5% of any non-investment insurance and mortgage income; or * A minimum of £20,000 (from 30 June 2...
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