FCA lifts capital requirement for Aberdeen Asset Management

12th Sep 2016 07:03

(ShareCast News) - The Financial Conduct Authority hiked the minimum amount of regulatory capital required of Aberdeen Asset Management, in effect raising its total regulatory requirement to roughly £475m.Following the FCA´s periodic review, the regulator decided to eliminate the benefit of insurance mitigation when modeling operational risk for Pillar 2 purposes while adding an allowance, or so-called scalar, to cover any unsighted and unquantifiable risks that might emerge.However, Aberdeen´s available capital was already comfortably above the new requirement, the fund manager said in a statement.Indeed, the fund manager had already been applying its own self-imposed scalar, equal to £100m, which it would now deduct from that imposed by the FCA.Aberdeen´s previous minimum regulatory capital requirement, including its own self-imposed level of headroom, was £435m.