Potentially an impractical suggestion, but would publishing a real-time solvency metric on the Freetrade landing page not be quite a transparent/smart way to quash any investor concerns? Maybe over-simplistic but the sentiment alone would go a long way.
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The capital adequacy requirements (as well as the authorisation process itself) should go some way to giving the public confidence that FCA-authorised firms hold a buffer against poor financial performance and that they had a ‘path to profitability’ in the first place.
I agree this is not perfect and not much use to Beaufort customers, but as pointed out above that is an extreme case.
I’d like to see this debacle act as a stimulant for HM Treasury / FCA to amend rules almost immediately so that it doesn’t happen again. Heads will roll, I think.
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