January 7, 2021

FCA financial resilience

The FCA have this morning published the results of its coronavirus (Covid-19) financial resilience surveys. The surveys were sent to solo-regulated firms to inform the FCA of the impact of coronavirus on firms’ financial resilience.

In response to the crisis, the FCA have been monitoring the effects of the economic downturn on firms’ solvency by rapidly increasing the data it collects on firms. The surveys were sent to 23,000 solo-regulated firms to understand the real-time effect the pandemic is having on the finances of the firms the FCA prudentially regulates. The FCA have also been using existing regulatory reporting data, enhanced data purchased from a third-party provider and in-depth analysis of liquidity for a number of the most significant firms.

As this survey is one of 4 ways the FCA is monitoring firms, caution should be taken about using this data to make predictions. In addition, this survey was conducted before the extension of the government’s furlough scheme, the positive vaccine developments and the announcement of new rules and restrictions. We will repeat the survey as the situation evolves.

The results can be found at https://www.fca.org.uk/news/press-releases/fca-publishes-coronavirus-financial-resilience-survey-data