FSA to carry out platform cap ad reviews

The FSA plans to carry out supervisory reviews of all platforms to ensure they meet the regulator’s capital adequacy requirements.

The regulator said in its discussion paper on the platform market in March that it expects platforms to demonstrate they have the necessary capital to wind down their regulated activities in an orderly manner.

The FSA has carried out assessments of platforms’ capital adequacy over the last two years.

It has also sought further confirmation from platforms that they do not need to build up additional capital resources.

But in its consultation paper on platforms published today, the FSA says: “We intend to carry out supervisory reviews of all platform operator capital adequacy assessments to ensure they consistently apply our guidelines. (article continues below)

“This will assist in assuring us, and platform users, that these firms have adequate resources under the capital requirements directive, given their role in assisting firms to implement the RDR adviser charging requirements.”

The FSA plans to carry out these reviews over the next few months.

The deadline for responses to the consultation paper is February 17, 2011, with a policy statement expected “as soon as possible” in 2011.