Cap-ad scrutiny to continue
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The FSA is to carry out supervisory reviews of all platforms to ensure they meet its capital adequacy requirements.
The regulator has been conducting assessments of platforms’ capital adequacy over the last two years to ensure they have the capital to wind down their regulated activities in an orderly manner.
In its platform consultation paper, published last week, the FSA made it clear that it will continue to scrutinise platforms’ capital adequacy.
The FSA says: “We intend to carry out supervisory reviews of all platform operator capital adequacy assessments to ensure they consistently apply our guidelines.
“This will assist in assuring us, and platform users, that these firms have adequate resources under the capital requirements directive, given their role in assisting firms to implement the RDR adviser charging requirements.”
The FSA plans to carry out these reviews over the next few months. It hopes to complete the assessments ahead of publishing a policy statement “as soon as possible” in 2011.
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