More than 800 advisory and intermediary firms face liquidity challenges in the coming months, the Financial Conduct Authority (FCA) has warned.
The numbers come from the regulator’s financial reliance survey which it sent to around 13,000 regulated firms on 4 June to assess the impact of Covid-19.
According to a freedom of information (FOI) request, the FCA found 836 advisory and intermediary firms may have liquidity challenges in the coming months, subject to realisation of expected cash inflows.
It also found 755 advisory and intermediary firms received government-backed loans during the coronavirus pandemic.
Only 1,815 companies reported a loss during the outbreak.
The FCA also said that 4,046 businesses had furloughed staff.
FCA probed liquidity, financial performance and business activity
The FCA’s survey asked about 10 questions on:
- Liquidity/cash availability and needs;
- Recent financial performance;
- Scale of business activity; and
- Access to government schemes.
In June, Personal Finance Society chief executive Keith Richards said: “The feedback will help ensure the regulator focusses on the right next steps to ensure the public can access suitable, affordable financial advice, as well as not over burdening the sector on matters that add little tangible client value or support.”
For more insight on international financial, planning please visit www.international-adviser.com
