Emma RadmoreFCA has published its finalised guidance explaining how it assesses what is “adequate financial resources“. The draft guidance was published for consultation around a year ago, and FCA has largely implemented the consultation version. It has not made specific changes to the guidance to take account of Covid-19, but notes that the crisis makes it all the more important for firms to have in place adequate resources.
FCA stresses that having adequate resources allows firms to operate and provide services throughout the economic cycle and will permit an orderly wind-down that will not cause undue economic harm to customers or the integrity of the UK financial system.
The guidance sets out FCA’s expectations on how firms should assess whether they consider their resources adequate, and the practices they can adopt to do so, as well as how FCA will assess them.
