CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

CP13/6
CRD IV for Investment Firms
• Figure 5: Cumulative total client money: 21 firms hold 66% of the total client money
within the market, of which the firm holding the lowest amount of client money holds
approximately £425 million. We therefore propose that the threshold for total client money
is £425 million.
% of Total Client Money
100%
90%
80%
Gradient = 0.5 which ≈ 79% (£220 mn)
70%
60%
50%
Gradient = 1 which ≈ 66% (£425 mn)
40%
30%
20%
10%
21 Firms 40 Firms
Captured Captured
0%
1 11 21 31 41 51 61 71 81 91
Number of Firms
43
39
34
30
26
21
17
13
9
4
£ billion
• Figure 6: Cumulative total client assets: 26 firms hold 74% of the total client assets
within the market, of which the firm holding the lowest amount of client assets holds
approximately £7.8 billion. We therefore propose that the threshold for total client assets
is £7.8 billion.
% of Total Client Assets
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
768
691
Gradient = 0.5 which ≈ 83% (£4.2 bn)
Gradient = 1 which ≈ 74% (£7.8 bn)
614
537
461
384
307
230
26 Firms
Captured
40 Firms
Captured
154
77
1 11 21 31 41 51 61 71 81 91
Number of Firms
£ billion
5.11 Accordingly, the proposed thresholds are as follows:
Table 10: Thresholds
Indicator
Total assets
Total liabilities
Annual fees and commission income
Client money
Client assets
Threshold
£530 million
£380 million
£120 million
£425 million
£7.8 billion
46 July 2013
Financial Conduct Authority