On 1 April 2013 the Financial Services Authority (FSA) was replaced by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Together these two regulators will work together to provide the supervision of all those previously regulated by the FSA.
With this change there are a number of issues arising such as, which authority your business will be regulated by, and the changes in the Handbook.
The rules governing financial advisers are in the midst of a significant shift and as specialists in advising finance professionals, we understand intimately the impact this new regulatory framework around VAT will have. Now HMRC has clarified its position, we can help with detailed information about the significant role VAT will soon play in the business of every financial adviser and how best to manage this demanding new obligation.
The regulator announced all IFAs will have to hold capital worth at least three months of their annual fixed expenditure, with a minimum of £20,000. The requirements will be phased in so by December 2013, firms have to hold a minimum of one month’s fixed expenditure or £15,000. By 31 December 2014 this goes up to two months’ worth or £15,000 and three months’ worth or £20,000 by the end of 2015.
Although the deadlines have been extended, this still represents a significant burden on smaller firms, the vast majority of which have fewer than five advisers. Careful planning will be needed and firms should now be considering what resources they need to have in place.
Whether it be registering for VAT, determining the VAT liability or managing the evidence HMRC requires, our specialist team is well positioned to handle the entire process and ensure full compliance.
For more information on our services for FCA and PRA Regulated Businesses, contact Alan Williams on 023 8046 1201.