The FCA has proposed measures that will strip down the rules on the types of funds that firms must hold to maintain financial stability during periods of stress so that they are able to absorb losses.
As the current regulatory capital rules were tailored for banks, “there are large sections which are not relevant to the vast majority of firms”, the FCA explained, meaning these rules do not align with the business models of many investment firms.
FCA pledges to ‘become more efficient and effective’ in five-year plan
The changes floated by the regulator, which would reduce the volu…
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