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

(in accordance with GENPRU 2.1.73R) which equal or exceed:
(1) the higher of:
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Appendix 1
(a) the funds under management requirement (in accordance
with GENPRU 2.1.66R) less the base capital resources
requirement in GENPRU 2.1.48R); and
(b) the fixed overheads requirement (in accordance with
GENPRU 2.1.53R); plus
(2) whichever is applicable of:
(a) the professional negligence capital requirement (in
accordance with GENPRU 2.1.67R(1)(a); or
(b) the PII capital requirement (in accordance with GENPRU
2.1.67R(1)(b).
2.1.65 G (1) The professional negligence capital requirement is applicable for a
collective portfolio investment management firm which, in
accordance with GENPRU 2.1.67R(1)(a), decides to cover
professional liability risks by way of own funds.
(2) The PII capital requirement is applicable for a collective portfolio
management investment firm which, in accordance with GENPRU
2.1.67R(1)(b), decides to cover professional liability risks by way of
professional indemnity insurance.
2.1.66 R The funds under management requirement is (subject to a maximum of
€10,000,000) the sum of:
(1) the base capital resources requirement; plus
(2) 0.02% of the amount by which the funds under management exceed
€250,000,000.
[Note: article 9(3) of AIFMD and article 7(1)(a)(i) of the UCITS Directive]
2.1.67 R A firm must:
(1) cover the professional liability risks set out in article [x] of the
AIFMD level 2 regulation (professional liability risks) (as replicated
in GENPRU 2.1.68EU) by either:
(a) maintaining an amount of own funds in accordance with the
provisions of article [x] of the AIFMD level 2 regulation
(additional own funds) (as replicated in GENPRU
2.1.70EU) (the professional negligence capital requirement);
or
(b) holding professional indemnity insurance and maintaining an