AMPS highlights flaws in cap ad proposals

Under the proposals issued in November 2012 the fixed minimum capital requirement is raised from £5,000 to £20,000. An operator's total capital requirement will factor assets under administration (AUA) and a surcharge based on the percentage of non-standard assets held. The proposals raised concern among those who thought the increases would lead to providers having to exit the market. In a newsletter to AMPS members chairman Andrew Roberts summarised the results of a series of industry roundtables and meetings with the FSA to discuss the proposals. He argued adopting an assets und...