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

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(2) the fixed overheads requirement.
Appendix 1
Adjustment of the variable capital requirement calculation for UCITS investment
firm collective portfolio management investment firms
2.1.46 R When a UCITS investment firm collective portfolio management investment
firm calculates the credit risk capital requirement and the market risk
capital requirement for the purpose of calculating the variable capital
requirement under GENPRU 2.1.40R it must do so only in respect of
designated investment business. For this purpose scheme management
activity managing an AIF or managing a UCITS is excluded from
designated investment business.
…
Table: Base capital resources requirement for a BIPRU firm
2.1.48 R Firm category Amount: Currency equivalent of
…
… …
UCITS investment firm
Collective portfolio
management investment firm
€125,000 plus, if the funds under
management exceed €250,000,000, 0.02%
of the excess, subject to a maximum of
€10,000,000.
Requirements for collective portfolio management investment firms
2.1.63 R A collective portfolio management investment firm must maintain capital
resources which equal or exceed the higher of (1) and (2).
(1) (a) The higher of:
(i) the funds under management requirement (in
accordance with GENPRU 2.1.66R); and
(ii) the fixed overheads requirement (in accordance with
GENPRU 2.1.53R); plus
(b) whichever is applicable of:
(i) the professional negligence capital requirement (in
accordance with GENPRU 2.1.67R(1)(a); or
(ii) the PII capital requirement (in accordance with
GENPRU 2.1.67R(1)(b).
(2) The amount specified in the table in GENPRU 2.1.45R.
2.1.64 R A collective portfolio management investment firm must hold liquid assets