Regulatory Compliance

Capital Adequacy

As the provider of regulated financial services, you are expected to understand and appropriately deal with the risks in your business, including holding adequate capital. Most regulated financial services businesses have to hold a specified value of capital in their business. The capital resources act as a buffer by absorbing unexpected losses that arise while you are in business and, if you cannot continue in business, the first losses as your firm is wound up.

Firms are required to hold an appropriate level of capital and/or liquid resources to cover potential harm. Calculating the appropriate level of capital and identifying the resources that can be used to meet your capital requirement is rarely straightforward.

Calculating the level of capital

Your business may be functioning very well at present but how well prepared is it if a key partner ends the business relationship or a significant client can’t or won’t pay? Our team of experts can help you identify and evaluate these and other risks so that you gain a better understanding of how much capital you should have in your business to be able to continue in business or wind down in an orderly way. We will help you identify what is reasonable and proportionate for your business given the potential for harm to your clients and, where relevant, the industry.

Identifying the right resources

Experience has shown that while firms may have enough capital to deal with unexpected situations, if the capital cannot be readily accessed (because it is not liquid), it is useless to the firm. Our team of experts will help you identify which resources you can use to meet your capital requirement.

Meeting your obligations

Our regulatory compliance team provide a range of advisory services to help clients like you meet your regulatory obligations. We can support you to:

  • put the correct policies and procedures into place;
  • train your staff to perform the assessments and calculations in-house;
  • audit the implemented procedures for assurance; and
  • brief your senior team and/or board members so they fully understand the requirements and oversee the function.

If you are looking for assistance in ensuring you meet the requirements of UK and European regulation, then let’s start a conversation today.

 


Other Regulatory Compliance Services

Get in Touch...

Contacy our Director, Alison Donnelly today