2D.(1)The resources of A must be appropriate in relation to the regulated activities that A carries on or seeks to carry on.
(2)The matters which are relevant in determining whether A has appropriate resources include—
(a)the nature and scale of the business carried on, or to be carried on, by A;
(b)the risks to the continuity of the services provided by, or to be provided by, A;
(c)A’s membership of a group and any effect which that membership may have.
(3) Except in a case within sub-paragraph (3A), the matters which are relevant in determining whether A has appropriate financial resources include—
(a)the provision A makes and, if A is a member of a group, which other members of the group make, in respect of liabilities;
(b)the means by which A manages and, if A is a member of a group, by which other members of the group manage, the incidence of risk in connection with A’s business.
(3A)Where the only regulated activities that A carries on or seeks to carry on are—
(a)relevant credit activities, and
(b)if any, activities to which, by virtue of section 39(1D), sections 20(1) and (1A) and 23(1A) do not apply when carried on by A,
A has adequate financial resources if A is capable of meeting A’s debts as they fall due.
(4)The matters which are relevant in determining whether A has appropriate non-financial resources include—
(a)the skills and experience of those who manage A’s affairs;
(b)whether A’s non-financial resources are sufficient to enable A to comply with—
(i)requirements imposed or likely to be imposed on A by the FCA in the exercise of its functions, or
(ii)any other requirement in relation to whose contravention the FCA would be the appropriate regulator for the purpose of any provision of Part 14 of this Act.
Cases considering Schedule 6, paragraph 2D (3)
[2025] UKUT 82 (TCC) · 10 March 2025
Applies the appropriate resources condition. The FCA’s conclusion concerning financial resources was unsupported on the supplied projections, but the absence of information about compliance and customer-suitability systems justified its conclusion concerning non-financial resources (see paras [69]-[77]).
Applies the factors relevant to appropriate non-financial resources, including managerial skills and experience and the ability to comply with FCA requirements. The applicant had not demonstrated adequate compliance and customer-protection systems (see paras [70], [73]-[77]).
[2024] UKUT 265 (TCC) · 2 September 2024
The Tribunal applies Threshold Condition 2D to the Applicant’s non-financial resources, including the skills, experience and compliance capacity of those managing its affairs. (see paras [8],[108])
The Tribunal treats the matters in Threshold Condition 2D(4) as relevant to assessing appropriate non-financial resources, including management skills and the ability to comply with regulatory requirements. (see para [8])
The Tribunal considers the skills and experience of those managing the applicant’s affairs as a relevant non-financial resource. (see paras [8],[100],[108])
The Tribunal considers whether the applicant’s non-financial resources are sufficient to enable compliance with regulatory and other applicable requirements. (see para [8])
The Tribunal includes compliance with requirements imposed or likely to be imposed by the FCA among the relevant indicators of appropriate non-financial resources. (see para [8])
The Tribunal includes compliance with other requirements for which the FCA would be the appropriate regulator among the relevant indicators of appropriate non-financial resources. (see para [8])
[2026] UKUT 351 (TCC) · 14 September 2026
The Tribunal identified appropriate resources as a threshold condition and found that Odey’s actions put OAM’s compliance with threshold conditions at risk. (see paras [71]; [1184]-[1185])
Cited only.
What each judgment says about Schedule 6, paragraph 2D is in the case-law panel in the full Act.