UK

Proposed new capital adequacy requirements

Nick Paul, Partner, CMS Cameron McKenna, London. nick.paul@cmck.com

Introduction

The Financial Services Authority (FSA) has recently published a Consultation Paper on Individual Capital Adequacy Standards, CP 136. In this Paper the FSA sets out, and invites comments on, its proposed draft framework for individual capital adequacy standards (ICAS) for authorised firms. These proposals are particularly relevant to deposit-takers, insurers and investment firms who have permission to take principal positions (ie, all firms in PRU categories 1,2 or 3).