Context
Throughout the Cvid-19 pandemic, cost of living crisis and beyond, the FCA collected financial resilience data from approximately 23,000 regulated firms. The data gathered helped the FCA to develop its understanding of financial resilience.
From 1 January 2024, this survey was replaced with the new financial resilience regulatory return FIN073.
Key points to note and next actions
Financial resilience is measured by assessing whether a firm holds enough resources to meet their ongoing obligations. It also takes into account whether they could ensure orderly wind down, should that be required.
For the purpose of the publication of the results, the FCA grouped firms into 8 market categories, including consumer finance and insurance (intermediation & brokers).
Results are broken down by 8 of the 9 questions asked by the survey:
- What is the total amount of liquidity resources that you control or have unrestricted access to?
- What are your estimated cash needs and expected cash inflows?
- Of the ‘Cash needs’ value provided in Question 2, what are your estimated cash needs to cover your fixed costs?
- Of the ‘Expected cash inflows’ value provided in question 2, how much was contractually committed?
- Has your firm negotiated any extensions with creditors/delayed payments?
- What was your net profit or loss in the given period?
- Have you had, or are you expecting, a decrease in profits/increase in losses?
- Please provide an estimate for the percentage decrease in profits/increase in losses over the next 3 months.
- What impact is the current macroeconomic environment having on your business model?
- What was your revenue in the last financial year?
- Have you received support under a government-backed loan scheme?