Simply Biz chairman Ken Davy has pledged to put aside a proportion of member fees to cover any shortfalls faced by members.
Davy says: “In essence we are going to set aside significant funds from the fees we receive for our core services over the next four years. This will build up a multi-million pound fund which will enable us to provide subordinated loans to members where circumstances make it appropriate.
“This new service will be available to current clients and members of the Simply Biz Group. We are also extending this groundbreaking facility to all new firms who join Simply Biz or Compliance First before April 6 next year.”
Davy says that while Simply Biz supports the principle of increased capital requirements, he has concerns about the current timescales and proportionality.
He says: “We have therefore decided to take this positive action to solve the issue for the firms we serve. It also demonstrates our determination to support the IFA sector. We believe it is important for IFAs not to have to face these challenges alone and we will be doing all we can to support IFAs on every aspect of the RDR.”