CP12/32: Implementation of the Alternative ... - BVCA admin

esources only at excessive cost.
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Appendix 1
market risk (1) (in COLL FUND and in accordance with article 3(9) of
the UCITS implementing Directive) the risk of loss of a
UCITS or AIF resulting from fluctuation in the market
value of positions in the scheme’s fund’s portfolio
attributable to changes in market variables, such as
interest rates, foreign exchange rates, equity and
commodity prices or an issuer’s credit worthiness.
(2) (except in COLL FUND) (in relation to a firm) the risks
that arise from fluctuations in values of, or income
from, assets or in interest or exchange rates.
MiFID investment firm (in summary) a firm to which MiFID applies including, for
some purposes only, a credit institution and UCITS investment
firm collective portfolio management investment firm.
(in full) a firm which is:
…
(3) a UCITS investment firm collective portfolio
management investment firm (only when providing the
services referred to in article 6(4) AIFMD or Article
6(3) of the UCITS Directive in relation to the rules
implementing the articles of MiFID referred to in
article 6(6) of AIFMD or Article 6(4) of that Directive
the UCITS Directive (as appropriate));
unless, and to the extent that, MiFID does not apply to it as a
result of Article 2 (Exemptions) or Article 3 (Optional
exemptions) of MiFID.
operational risk (1) (in COLL FUND and in accordance with article 3(10) of
the UCITS implementing Directive) the risk of loss for a
UCITS or AIF resulting from inadequate internal
processes and failures in relation to the people and
systems of the management company or AIFM or from
external events, and it includes legal and documentation
risk and risk resulting from the trading, settlement and
valuation procedures operated on behalf of the scheme
fund.
own funds …
(2) (except in COLL FUND) (in accordance with Article
4(22) of the Banking Consolidation Directive) the risk of
loss resulting from inadequate or failed internal
processes, people and systems or from external events,
including legal risk.