As much as 4,000 monetary companies may fail as a result of COVID, in accordance with UK regulator By Reuters
© Reuters. FILE PHOTO: Canary Wharf business district in London
LONDON (Reuters) – Around 4,000 financial firms in the UK were at an “increased risk” of collapse due to the aftermath of the pandemic, the Financial Conduct Authority said Thursday.
The FCA surveyed 23,000 financial firms to assess their resilience to COVID-19, which last year sparked the UK’s worst economic downturn in 300 years.
“In late October, we discovered there were 4,000 financial services companies with low financial resilience and increased risk of default,” said Sheldon Mills, executive director, consumer and competition, FCA.
“These are mostly small and medium-sized businesses and around 30% can cause damage if they fail.”
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