The FSA has deferred the introduction of new capital rules for personal investment firms for two years to allow firms more time to prepare.
The rules mean all IFAs will have to hold capital worth at least three months of their annual fixed expenditure, with a minimum of £20,000.
Firms were required to hold a minimum of one month’s fixed expenditure or £15,000 by December 31, 2011, two months worth or £15,000 by December 31, 2012 and three months or £20,000 by the end of 2013.
Firms must now start implementing the new rules on December 31, 2013 with the full requirements in place by the end of 2015.
This is the second time the FSA has delayed the new requirements.
In November 2009, the FSA delayed the final implementation date from December 31, 2012 to the end of 2013.