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

Funds under management requirement
7.3.2 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
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Appendix 1
(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]
Fixed overheads requirement
7.3.4 R The fixed overheads requirement is one quarter (13/52) of the firm's relevant
fixed expenditure calculated in accordance with IPRU(INV) 7.3.5R.
[Note: article 9(5) of AIFMD and article 7(1)(a)(iii) of the UCITS Directive]
7.3.5 R For the purposes of IPRU(INV) 7.3.4R, and subject to IPRU(INV) 7.3.7R to
IPRU(INV) 7.3.10R, a firm’s relevant fixed expenditure is the amount
described as total expenditure in its final income statement (FSA030) for the
previous financial year, less the following items (if they are included within
such expenditure):
(1) staff bonuses, except to the extent that they are guaranteed;
(2) employees' and directors' shares in profits, except to the extent that
they are guaranteed;
(3) other appropriations of profits;
(4) shared commission and fees payable which are directly related to
commission and fees receivable which are included within total
revenue;
(5) interest charges in respect of borrowings made to finance the
acquisition of the firm's readily realisable investments;
(6) interest paid to customers on client money;
(7) interest paid to counterparties;
(8) fees, brokerage and other charges paid to clearing houses, exchanges
and intermediate brokers for the purposes of executing, registering or
clearing transactions;
(9) foreign exchange losses; and
(10) other variable expenditure.
7.3.6 G The income statement (FSA030) should be completed on a cumulative basis,