Adequate Resources is a rule we have to ensure firms have adequate resources for the regulated activity they carry out or plan to carry out. Any firm that is regulated, or wishes to become regulated, should consider Threshold Conditions 4. You should review the level of resources required to operate your business effectively.
Types of resources that your firm should review are:
This will vary between firms. There is no formal review process – it should be proportionate to the needs and circumstances of each firm and its clients. Every firm must decide what level of capital and Professional Indemnity Insurance (PII) it needs to meet both ongoing needs and unexpected eventualities.
When reviewing your firm’s threshold conditions obligations, consider the following issues:
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