PS15/28: Capital resources requirements for personal investment firms (PIFs): feedback on CP15/17 and final rules

Published: 08/12/2015     Last Modified: 08/12/2015

In this policy statement we report on the main issues arising from CP15/17: Capital resources requirements for personal investment firms (PIFs) and publish the final rules.

Why are we issuing this policy statement?

On 28 May 2015, we published a consultation paper (CP15/17: Capital resources requirements for personal investment firms) proposing changes to our Handbook of rules and guidance to introduce new capital resources requirements for personal investment firms (PIFs). These provisions are in Chapter 13 of the Interim Prudential sourcebook for Investment Businesses (IPRU (INV)).

In this policy statement, we summarise the feedback we received on CP15/17 and give our responses. We also set out the final rules, most of which which will come into force on 30 June 2016.

PS15/28: Capital resources requirements for personal investment firms (PIFs): feedback on CP15/17 and final rules (PDF)

Who is this policy statement aimed at?

This policy statement will be relevant to:

  • firms that provide financial advice - both PIFs and competing firms subject to other prudential regimes - and potential new market entrants
  • professional and trade bodies representing PIFs and other types of financial adviser
  • providers of investment and protection products and services distributed through PIFs
  • providers of professional indemnity insurance to PIFs
  • providers of investment platform, professional and other services to PIFs
  • consumers and consumer organisations

What are the next steps?

All PIFs should review the changes to our Handbook set out in Appendix 1 of this policy statement to establish how the new rules will affect their business and to identify any changes they may need to make to comply with them.

The majority of Handbook changes set out in Appendix 1 of the policy statement will come into force on 30 June 2016. Further changes to the requirements for PIFs with permission to establish, operate, or wind up a personal pension scheme will be made on 1 September 2016 to coincide with the new capital framework for self-invested personal pension (SIPP) operators.

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