FSA is consulting on changes to the prudential requirements it applies to Personal Investment Firms. The new regime builds on previous papers, and includes new rules to:
- simplify how capital resources are calculated and make rules consistent across firms;
- extend the Expenditure Based Requirement and raise the minimum capital resource level to £20,000; and
- introduce a sliding scale of additional capital resources for firms to hold against potential liabilities for any business not covered by their PII policies.
The consultation includes draft new rules changing some Glossary terms and making significant changes to Chapter 13 of IPRU(INV). FSA wants comments by 31 March 2009.