Some 4,000 regulated firms are at risk of failure due to the ongoing coronavirus pandemic and a third of those have the potential to cause harm if they go under, according to the financial regulator.
7
th January 2021 8:01 am
The FCA’s analysis of the financial resilience of firms has signalled a coronavirus-driven market downturn may cause “significant numbers” of firms to fail over the next 12 months.
Advisers were among the 5,159 coronavirus financial resilience survey respondents in the “retail investments” sector, which also included platforms, Sipp operators, wealth managers and crowdfunders.
The regulator has excluded responses from the “pensions and retirement income” sector in the aggregated data it has published for its surveys to avoid firms being identified.
In response to the coronavirus crisis, the regulator has been monitoring the effects of the economic downturn on firms’ solvency.
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The Financial Conduct Authority (FCA) has today published the results of its coronavirus (Covid-19) financial resilience surveys. The surveys were sent to solo-regulated firms to inform the FCA of the impact of coronavirus on firms financial resilience.
In response to the crisis, the FCA has been monitoring the effects of the economic downturn on firms solvency by rapidly increasing the data it collects on firms. The surveys, which are one of the data sources used to monitor financial resilience, have been sent to 23,000 solo-regulated firms to understand the real-time effect the pandemic is having on the finances of the firms the FCA prudentially regulates. The FCA has also been using existing regulatory reporting data, enhanced data purchased from a third-party provider and in-depth analysis of liquidity for a number of the most significant firms.
UK Financial Conduct Authority Publishes Coronavirus Financial Resilience Survey Data Date
07/01/2021
The Financial Conduct Authority (FCA) has today published the results of its coronavirus (Covid-19) financial resilience surveys. The surveys were sent to solo-regulated firms to inform the FCA of the impact of coronavirus on firms’ financial resilience.
In response to the crisis, the FCA has been monitoring the effects of the economic downturn on firms’ solvency by rapidly increasing the data it collects on firms. The surveys, which are one of the data sources used to monitor financial resilience, have been sent to 23,000 solo-regulated firms to understand the real-time effect the pandemic is having on the finances of the firms the FCA prudentially regulates. The FCA has also been using existing regulatory reporting data, enhanced data purchased from a third-party provider and in-depth analysis of liquidity for a number of the most significant firms.