FCA proposes new financial resilience reporting regime for most solo regulated firms

Published: 06 October 2022

The FCA is proposing the creation of a new quarterly reporting regime to assess financial resilience for 20,000 solo regulated firms which will replace the current, ad hoc Financial Resilience Survey. The purpose of collecting the data is for the FCA to be able to better identify firms that may not or be at risk of not having access to ready assets to let them service their liabilities. FCA wants this data to allow it to intervene with firms to make sure they improve their position or ensure an orderly wind down of businesses that are unable to do so. For AIMA members the only relevant exception is for the 3,000 MIFIDPRU firms which the FCA says already report comparable information.

The reporting will ask:

1 What is the total amount of liquid assets that you control or have unrestricted access to?

2 What are your average monthly cash needs arising from fixed costs?

3 What is your net profit OR loss in the last quarter?

4 What was your revenue in the last financial year?

5 Please report your net asset or liability position at the end of the last (calendar) quarter.

FCA notes that the current Financial Resilience Survey asks nine questions. Responses to CP22/19, Creation of a baseline financial resilience regulatory return, are due by 2 December 2022. https://www.fca.org.uk/publication/consultation/cp22-19.pdf