The regulator said it would provide a more flexible approach on capital and liquidity “buffers” to help improve firm’s financial resilience to deal with the outbreak but firm’s must keep the FCA up to speed on any problems.

The FCA said: “We want to see firms to continue operating in this challenging period, and, where we can, we intend to provide flexibility to regulated firms to ensure this.

“Capital and liquidity buffers are there to be used in times of stress. Firms who have been set buffers can use them to support the continuation of the firm’s activities.”

However it added firms should be planning ahead and ensuring the “sound management” of their financial resources.

It added that if a firm needs to exit the market, planning should consider how this can be done in an “orderly way” while taking steps to reduce harm to consumers and the markets.

It pointed out that the Government has announced schemes to help firms get through the crisis. These would help firms plan for how they will meet debts as they fall due, it said.

The watchdog added that if a firm is concerned it will not be able to meet its capital requirements or debts as they fall due, they should contact their FCA supervisor with a plan for the immediate period ahead. 

Firms that are prudentially regulated by the Prudential Regulation Authority (PRA) should consider the PRA’s requirements and discuss their concerns with them.