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

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Appendix 1
amount of own funds to meet the PII capital requirement in
accordance with the provisions of article [x] of the AIFMD
level 2 regulation (professional indemnity insurance) (as
replicated in GENPRU 2.1.71EU) and GENPRU 2.1.72R;
and
(2) comply with the qualitative requirements addressing professional
liability risks set out in article [x] of the AIFMD level 2 regulation
(qualitative requirements addressing professional liability) (as
replicated in GENPRU 2.1.69EU).
[Note: article 9(7) of AIFMD]
2.1.68 EU [Article [x] of the AIFMD level 2 regulation (professional liability risks) to
be inserted]
2.1.69 EU [Article [x] of the AIFMD level 2 regulation (qualitative requirements
addressing professional liability) to be inserted]
2.1.70 EU [Article [x] of the AIFMD level 2 regulation (additional own funds) to be
inserted]
2.1.71 EU [Article [x] of the AIFMD level 2 regulation (professional indemnity
insurance) to be inserted]
2.1.72 R If a firm satisfies the requirement in GENPRU 2.1.67R with professional
indemnity insurance it must, in addition to maintaining an amount of own
funds to cover any defined excess, hold adequate own funds to cover any
exclusions in the insurance policy that would otherwise result in the firm
having insufficient resources to cover liabilities arising.
2.1.73 R For the purposes of GENPRU 2.1.64R, liquid assets are assets which:
(1) are readily convertible to cash within one month; and
(2) have not been invested in speculative positions.
2.1.74 G Examples of liquid assets that are acceptable for the purposes of GENPRU
2.1.73R include cash, readily realisable investments that are not held for
short-term resale, and debtors.
[Note: article 9(8) of AIFMD]