View more on these topics

FSA says new capital adequacy requirements will not have to be held as cash

FSA head of the RDR Amanda Bowe says the FSA’s new capital adequacy rules have been misunderstood and that capital will not have to be held as cash.

Speaking at the Sesame Symposium today, she said the paper, published later today, will be manageable for firms and based around the same RDR timetable of December 2012.

She said the capital requirements could be held in cash but also through another asset.

She said: “We are very aware of introducing new rules around capital at a time of market turmoil and difficult economic conditions will be a concern to many firms in the industry. However we do propose to introduce these in the same transition timetable that we propose with the RDR. We want to make this more manageable for firms and make it consistent with the RDR timetable.

“Some people have misunderstood the content of this capital thinking its hard cash that they need to put in a bank account they cannot touch. It isn’t. Instead the expenditure base requirement is about holding funds in liquid form to fund an orderly wind down should that be necessary. So, it can be in a bank account but also another asset.”


On the defensive

Warren Buffett says: “Be fearful when others are greedy and be greedy when others are fearful”. In October, he put this into practice, buying US equities for his personal account and predicting that “the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up”. There are several reasons why now might be a good time to revisit the equity market.

A guide to automatic re-enrolment

Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm