FCA has published a policy statement setting out its final rules relating to the capital resources requirements for PIFs (see Capital Resources and Professional Indemnity Insurance Requirements for Personal Investment Firms (No 2) Instrument 2015 above). The new rules include:
- revocation of deferred rules previously proposed by the then FSA;
- introducing a new capital resources requirement that is the higher of:
- £20,000; or
- a variable requirement of 5% of a firm’s investment business annual income; and
- clarification through that, for the purpose of the income-based capital computation, a firm should ensure that it includes any of its investment business income that is accounted for by a third-party firm.