FCA lifts capital requirement for Aberdeen Asset Management

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.