On 26 March 2020, the FCA issued a short statement outlining its financial resilience expectations for solo-regulated firms.

Key points in the statement include:

• the FCA wants firms to continue operating in this challenging period, and, where it can, it intends to provide flexibility to regulated firms to ensure this;
• capital and liquidity buffers are there to be used in times of stress. Firms who have been set buffers can use them to support the continuation of the firm’s activities;
• firms should be planning ahead and ensuring the sound management of their financial resources. If the firm needs to exit the market, planning should consider how this can be done in an orderly way while taking steps to reduce the harm to consumers and the markets;
• Government schemes to help firms through this period can be part of a firm’s plans for how they will meet debts as they fall due;
• If a firm is concerned it will not be able to meet its capital requirements, or its debts as they fall due, they should contact their FCA supervisor with its plan for the immediate period ahead; and
• firms that are prudentially regulated by the PRA should consider the PRA’s requirements and discuss their concerns with them. Those firms should also keep the FCA notified of any significant developments.