overall financial adequacy rule
- (1) (for a dormant account fund operator) GENPRU 1.2.26R as in force at 31 December 2015, which requires that a firm must at all times maintain overall financial resources, including capital resources and liquidity resources, which are adequate, both as to amount and quality, to ensure that there is no significant risk that its liabilities cannot be met as they fall due.10479
- (2) the requirement in MIFIDPRU 7.4.7R(1) (Overall financial adequacy rule), which is the obligation for a MIFIDPRU investment firm to hold own funds and liquid assets which are adequate, both as to their amount and quality, to ensure that:104
- (a) it is able to remain financially viable throughout the economic cycle, with the ability to address any material potential harm that may result from its ongoing activities; and
- (b) its business can be wound down in an orderly manner, minimising harm to consumers or to other market participants.