Regulatory Capital & Liquidity.
Helping firms assess and manage capital and liquidity requirements with confidence.
Most FCA-regulated firms are required to hold adequate financial resources, in the form of regulatory capital and liquidity, to ensure that they can continue to operate, and address the risks that may arise as a result of their operations.
Meeting these requirements is a fundamental condition of FCA authorisation, and failure to do so can result in serious consequences, including harm to stakeholders and potential loss of authorisation.
ESTABLISH YOUR CAPITAL & LIQUIDITY REQUIREMENTS.
Whether you’re applying for FCA authorisation or already regulated, we can ensure that you hold an efficient but sufficient amount of regulatory capital and liquidity to maintain compliance with the regulations, and ensure that the amount of capital and liquidity deployed and held is proportionate to the scale and risks faced of your business.
Our Financial Resilience team are not only regulatory experts, but also experienced chartered accountants, bringing together a unique skillset of regulatory knowledge and accounting acumen. This enables Cosegic to be able to translate the complex world of Prudential regulations and advise and support your Firm in the application of these rules and the FCA’s broader expectations.
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Requirements
We assess and establish your firm’s regulatory capital and liquidity requirements, ensuring you understand what must be held to satisfy FCA expectations.
Resilience
Our specialists optimise your capital and liquidity framework so that resources are efficient, proportionate, and aligned to the risks and scale of your business.
Reporting
We support you in applying the rules, monitoring positions, and reporting effectively — helping you maintain compliance and engage regulators with confidence.
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FREQUENTLY ASKED QUESTIONS
Find answers to the questions we’re asked most often, from our compliance and training services to how we can support your business.
What are regulatory capital and liquidity requirements for FCA-regulated firms?
Regulatory capital and liquidity requirements are the minimum financial resources that FCA-regulated firms must hold to ensure they can continue to operate and address the risks arising from their activities. Meeting these requirements is a fundamental condition of FCA authorisation, and failure to do so can result in serious consequences, including harm to stakeholders and potential loss of authorisation.
How are regulatory capital requirements calculated for FCA-regulated firms?
Regulatory capital requirements vary depending on a firm's regulatory classification and business activities. For investment firms subject to IFPR, capital requirements are based on a combination of fixed overheads, K-factor requirements reflecting the potential harms the firm could cause, and the results of the ICARA process. Firms must ensure their capital calculations are accurate, proportionate, and regularly reviewed.
What is the difference between regulatory capital and liquidity requirements?
Regulatory capital requirements relate to the minimum level of own funds a firm must hold to absorb losses and support an orderly wind-down. Liquidity requirements relate to the minimum level of liquid assets a firm must hold to meet its short-term financial obligations. Both are core components of the FCA's prudential framework and must be managed and monitored on an ongoing basis.
What are the consequences of breaching regulatory capital or liquidity requirements?
Breaching regulatory capital or liquidity requirements is a serious matter that must be reported to the FCA immediately. Consequences can include FCA supervisory intervention, restrictions on business activities, reputational damage, and in severe cases, loss of authorisation. Firms should monitor their capital and liquidity positions closely and take proactive steps to address any emerging shortfalls.
How can Cosegic help us meet our regulatory capital and liquidity requirements?
Cosegic's Financial Resilience team combines deep regulatory expertise with the skills of experienced chartered accountants, bringing together a unique skillset that enables us to translate the complex world of prudential regulation into clear, practical advice. We ensure you hold an efficient but sufficient amount of regulatory capital and liquidity, proportionate to the scale and risks of your business, and support you in meeting the FCA's broader prudential expectations.