The Financial Conduct Authority has published guidance on a new framework to help financial services firms ensure they have adequate financial resources.
The framework forms part of the regulator’s broader approach to supervision and it aims to provide more clarity to the industry on:
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the role of adequate financial resources in minimising harm
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the practices firms can adopt when assessing adequate financial resources
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how we assess the adequacy of a firm’s financial resources
Ensuring the financial soundness of regulated firms and individuals is a key focus for the FCA and the regulator hopes that this framework will help firms to take effective steps to minimise harm to consumers and markets.
