The Financial Conduct Authority (FCA) has revealed some of the results to its financial reliance survey it sent to around 13,000 firms.
According to a freedom of information (FOI) request, the UK regulator found 836 advisory and intermediary firms may have liquidity challenges in the coming months, subject to realisation of expected cash inflows.
It also found 755 advisory and intermediary firms received government-backed loans during the coronavirus pandemic.
Only 1,815 companies reported a loss during the outbreak.
The FCA also said that 4,046 businesses had furloughed staff.
Intentions
The FCA’s survey asked around 10 questions on:
- Liquidity/cash availability and needs;
- Recent financial performance;
- Scale of business activity; and
- Access to government schemes.
In June, Keith Richards, Personal Finance Society chief executive, said: “The feedback will help ensure the regulator focusses on the right next steps to ensure the public can access suitable, affordable financial advice, as well as not over burdening the sector on matters that add little tangible client value or support.
