Question: In box two of section D1 of my Gabriel (Gathering Better Regulatory Information Electronically) which relates to regulatory capital, what is the minimum requirement for mortgage and general insurance firms?
Answer: For firms which do not hold client money, the minimum requirement is £5,000 or 2.5 per cent of the annual mortgage and insurance turnover, whichever is the highest.
For firms which do hold client money, this increases to £10,000 or 5 per cent of the annual mortgage and insurance turnover, if held in a statutory trust account. If the firm operates a non-statutory trust, this increases to £50,000.
Aileen Lynch is head of technical at Compliance First