Capital. A firm must have sufficient capital at all times.
Liquidity. A firm must be able to meet its liabilities as they fall due.
Both need monitoring. Both need reporting. Both need documenting.
- Help you put in place systems and processes to satisfy these requirements
- Advise on capital planning and the policies that should be in place
- Help with documentation and can review your returns
- Guide you on preparation of your ICAAP and ILAA
If you want more information, please contact us.
All regulated firms regardless of their size are required to maintain, at all times, capital adequacy above a set financial resources requirement level.
This will vary from firm to firm and depend on the regulatory permissions that they hold as well as the nature, scale and complexity of their activities.
For some firms these rules can be quite complicated and they might have to be communicated to the regulator either on regular basis electronically via FCA GABRIEL submission or on an ad hoc basis, by providing financial projections to the regulator in support of a variation of permission application or during FCA authorisation itself.
Inevitably, some firms need to amend their capital structures over time.
This might arise as a result of business expansion into additional business areas or as a result of the firm experiencing financial difficulties.
In either case it is likely that the firm will have to enter into dialogue with the regulator to explain any proposals as part of any resolution plans it may have which often requires a level of understanding and articulation of the prudential rules either on the part of the firm or its advisers.
How can Complyport Help with Financial Resources Consulting?
Complyport currently assists a number of asset managers, Broker Dealers, Investment Advisory and Corporate Finance firms.
These firms fall under the prudential rules set out in BIPRU, IFPRU, IPRU(INV) of the FCA Handbook.
Complyport is able to help firms address their prudential regulatory responsibilities.
We are able to offer a comprehensive range of consultancy services which includes:
- Preparation and submission of GABRIEL returns on an individual or consolidated basis using accounting data provided by the firm;
- Assistance with the preparation and submission of COREP XBRL returns to the FCA;
- Guidance on possible capital structures allowable under the relevant rules and tailored to meet the specific circumstances of the firm. This may be at the authorisation stage or possibly where the firm proposes to increase or reduce its capital resources;
- Helping BIPRU firms understand and fulfil their obligations under the Pillar 2 Supervisory Review Evaluation Process (SREP) so that they can identify measure and mitigate the risks faced by their business. Here Complyport can add value to the firm’s Internal Capital Adequacy Assessment Process (“ICAAP”) by providing help with its drafting, reviewing or providing challenge to its substance and quality;
- Assisting BIPRU firms with the preparation or review of the firms’ Pillar 3 and other regulatory disclosures and where it should be published;
- Assistance with additional capital adequacy reporting for Collective Portfolio Management (CPM) and Collective Portfolio Management Investment (CPMI) firms under the Alternative Investment Fund Managers Directive (AIFMD);
- Assisting firms to develop appropriate and proportionate Liquidity Adequacy Assessment processes and plans;
- Development of financial models, forecasting including stress testing and scenario analysis;
- Providing remedial assistance to firms to help them resolve capital resources breaches with the regulator;
- Guidance on the impact that a variation of permission will have on a firm’s prudential requirements.