Firms to review their assessment of adequate financial resource
In April, the Financial Conduct Authority (FCA) wrote a Dear CEO letter to motor finance firms to remind them that they must ensure they are maintaining adequate financial resources. The assessment of adequate financial resources is critical and forms part of the FCAs threshold conditions. Having adequate financial resources reduces the risk of market disruption, increases the chance that firms can ‘put things right’ when they go wrong and allows firms to minimise consumer harm.