Wealth firms servicing retail investors will not be able to use government loans to fund capital adequacy requirements, the Financial Conduct Authority (FCA) has warned.
In a 'Dear CEO' letter issued last night (31 March), the watchdog laid out how it will support business through the coronavirus pandemic.
Despite the warning regarding the use of loans, it said firms will be able to use government schemes to service debts and remain operationally solvent.
“Capital and liquidity buffers are there to be used in times of stress,” wrote Christopher Woolard, interim chief executive of the FCA.
...
