threesixty has asked the FCA to consider relaxing rules about capital adequacy to help businesses struggling with the impact of the coronavirus outbreak. Since 1 July 2017 it has been a regulatory requirement that firms need to hold the higher of £20,000 or 5 per cent of their investment business income in order to meet capital adequacy rules. Earlier this week chancellor Rishi Sunak announced a £330bn package of guaranteed loans to businesses. But there are concerns IFAs may breach their capital adequacy limits if they take up the loan offers and use this cash to meet their regulatory requirements.
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