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On Monday the FCA published its long awaited policy statement on the new capital adequacy requirements for SIPP operators, PS14/12, which started its life in November 2012 with the FSA. The original consultation paper proposed an initial capital adequacy requirement as well as surcharges on non-standard assets (NSAs) – including commercial property. CP12/33 vs. PS14/12 The original initial capital requirement (ICR) was calculated by the square root of assets under administration (AUA) multiplied by 20. Faced with such a high multiplier, many smaller SIPP operators would have been forced to close down but under the PS14/12 there is a new… continue reading