AIFA calls for adviser views on cap requirements

The Association of IFAs (AIFA) is calling on the adviser community to "unite and respond" to "potentially damaging" proposals to increase firm's regulatory capital.

It is asking members to complete an online survey which it says will guide its response to the FSA's Prudential Rules for Personal Investment Firms (PIFs) consultation.

The paper suggests one-man IFAs will see their capital adequacy requirement double to £20,000, while for larger firms it could be significantly more.

In its consultation, the FSA admitted "some firms will no longer find it profitable to continue operation".

"AIFA perceives this paper to be of significant importance to individual firms and the profession overall," says AIFA director of policy Andrew Strange. "But we need significant input from firms to deliver results.

"I am sure members will feel this is a worthwhile exercise to ensure the IFA community unites and responds as one voice to the potentially damaging proposals that have been set out."

The survey seeks to identify both a firm's current and future proposed regulatory capital requirements. It also considers the availability and definition of capital, and appetite of firms for risk-based capital requirements.

It will be emailed to principals of all AIFA members for completion on the AIFA website this week and will remain open until midday on 20 February.