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Robyn Hall
Just Retirement is going on the road over the next few months. This seminar is in London.
Area Sales Manager - Financial Services - London
North London
Mortgage Consultant / Mortgage Adviser - Fulham
South London
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FSA capital adequacy proposals may see IFAs leaving the industry warns BDO Stoy Hayward
28 November, 2008
Paul Gough, Head of Retail Financial Services, at BDO Stoy Hayward says:
“Whilst the FSA's proposals to simplify and clarify the existing capital resources and requirements are welcome, the FSA may have underestimated the financial effect on smaller firms.
“A number of small IFAs, who have historically only been required to have capital resources of £10,000, will now be subject to the expenditure based requirement. This could well be significantly greater than the new proposed £20,000 minimum level,” he continues.
“They could also face higher funding requirements if they wish to leave the industry due to the "Leaving Resources Behind" proposals,” points out Gough.
“This combined with other changes proposed in the Retail Distribution Review (including the FSA's refusal to put a limitation on the time period for claims and additional costs of funding the Financial Standards Board) is likely to lead to large numbers of small IFAs either joining larger organisations or leaving the industry," concludes Gough.
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