The Financial Services Authority has struck off 19 financial advisory firms for failing to demonstrate their ability to meet capital adequacy requirements with potential claims.
Our view
A tough one for those that are struggling. In the UK smaller financial advisers are required to not only pay huge professional indemnity insurance fees and regulator fees but are also required to maintain a minimum amount of available liquid capital at all times of around £10,000. This can be tough if all expenses come at once.
Put yourself in the smaller man's business shoes - have you got £10,000 spare cash before you even start to run a business?