The capital resources requirement for insurance and/or mortgage firms not holding client money is the higher of:
• £5,000; and
• 2.5% of the annual income from its insurance and/or mortgage mediation activities.
If you hold client money then the requirement is:
• £10,000; and
• 5% of the annual income from its insurance and/or mortgage mediation activities.
Annual Income – Definition
Annual Income is the annual income given in the firm’s most recent annual financial statement from the relevant regulated activities.
Annual income is the amount of all brokerage, fees, commissions and other related income (for example, administration charges, overriders, profit shares) due to the firm in respect of or in relation to those activities. It also includes other amounts the firm may have agreed to pay to other persons involved in a transaction, such as sub-agents or other intermediaries.