FCA consults on prudential investment firm rules: Targets liquidity, remuneration and capital requirements
FCA calls for industry views on post-Brexit prudential rules
The Association of IFAs (AIFA) is calling on the adviser community to "unite and respond" to "potentially damaging" proposals to increase firm's regulatory capital.
The FSA admits the combined impact of the RDR and the increased capital requirements for firms may force some investment advisers out of business.
Firms providing investment advice will see their minimum capital requirements double to £20,000, the FSA proposes.
Firms which are seen by the FSA as being "well-controlled and managed" in terms of its regulatory processes could potentially see lower capital requirements and supervision as a result of adopting principles-based regulation.
FSA chief executive John Tiner has defended the regulator's recent focus on providers' capital requirements by stating there is no conspiracy to rid the industry of firms of ‘mutuality'.