The Financial Conduct Authority(FCA) has updated its website today. Promising flexibility for struggling regulated firms and allowing them to use their capital buffers to support their going concerns.
The FCA said: “If companies need to exit the markets do so in an orderly way and make sure there is no harm to consumers and the markets”.
The announcement comes after countries entered the lockdown to stop the virus spread and markets took a turn.
The FCA said: “Firms who have been set buffers can use them to support the continuation of their activities”.
Government backed schemes are there to support their businesses and the economy through this downturn.
Firms that may not meet their capital requirements or debts should contact the FCA with a plan for the immediate period ahead.
The chancellor Rishi Sunak said: “£330 billion of loans will be available to protect businesses against the financial difficulties cause by the coronavirus".
Roberts Clark IFS Limited (this website financialadvice.net) has already carried more than double for many years and usually nearly treble the required capital required by the FCA as part of our own contingency planning.
All our staff are able to work remotely from home with only two, essential staff (husband/wife directors allowed in the office). We will continue to provide financial services for our clients and new clients. We have funds to be able to pay our staff for at least a year with no income and do not plan to put employees into furlough. We do not plan to borrow money from the government nor claim 80% of employee pay.
Of course, we are realisti, if work does stop from you, our clients, which it may do given that we are all being squeezed, then we will revisit if cash reserves run low. We will do our best and no employee will lose their job, even if we are eventually required to furlough them.