The final rule comes into effect on 30 June 2017
Put briefly - if your annual income is less than Â£400,000 your prudential requirement will be a minimum of Â£20,000 from 30 June 2017. Any income above that means your cap ad is 5% of that number.
Of the Â£20k, some Â£15k must either be share capital or retained profit.
Only Â£5k can now be subordinated loan only.
In reality, your next Gabriel return will check your cap ad is correct.
If the numbers are wrong - or rather not sufficient to pass the cap-ad - you cannot submit the data. A slightly alarming fact! In order to avoid the fine for late delivery it forces you to input incorrect figures and then contact the FCA at the same to request a re-submission or inform them that the data is wrong and that you actually fail the cap ad.
If you do that you risk a suspension of your licence until the cap ad is sorted out. That is not an unreasonable response from the FCA. Remember that the test must be passed â€œat all timesâ€, so Gabriel is just a final checker. One final point â€“ for exempt CAD firms the requirements are in Euro, and we generally recommend Â£25k cap ad minimum.
Unlike other support operations, IFAC nearly always submit gabriel returns for their members - making members' lives easier.
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