The Financial Conduct Authority (FCA) is repeating its mandatory survey of regulated firms to understand how their financial positions have changed during the pandemic.
In a statement published on its website the regulator said it would issue its survey for a fourth time, to help it obtain a more accurate view of firms’ financial resilience as a result of coronavirus. Firms in the first tranche will have received the survey by email between 12th and 16th April. Responses must be submitted within 15 working days of receipt of the survey, according to an email to firms seen by FTAdviser.
The fourth survey comes after the FCA issued the first phase of its Covid-19 impact survey between June and August last year. In January, the regulator said it had identified 4,000 financial services firms with low financial resilience and at heightened risk of failure at the end of October. According to the FCA, the survey has helped it obtain an accurate view of the impact of Covid-19 and has supported its work to mitigate risks of harm to consumers, the market and competition within it. Survey questions to firms have previously included what impact the coronavirus is having on their business models and whether permanent employees have been furloughed. The regulator said it expects to repeat the survey in the future.
David Ryder, head of proposition at Paradigm Consulting, said, “The Covid-19 Impact Survey has become the FCA’s temperature gauge for assessing the health of firms throughout the pandemic, enabling the regulator to continually monitor the key areas of liquidity/cash availability and needs, recent financial performance, scale of business activity and access to government schemes."
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