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

More documents

Recommendations

Info

Page 69 of 91 Appendix 1 so that the final income statement in a firm's financial year (ie the period that ends on the firm's accounting reference date) relates to the entire year. 7.3.7 R The relevant fixed expenditure of a firm is: (1) where its final income statement (FSA030) for the previous financial year does not relate to a twelve-month period, an amount calculated in accordance with IPRU(INV) 7.3.5R, pro-rated so as to produce an equivalent twelve-month amount; or (2) where it has not completed twelve months’ trading, an amount based on forecast expenditure included in the budget for the first twelve months' trading, as submitted with its application for authorisation. 7.3.8 R A firm must adjust its relevant fixed expenditure calculation so far as necessary to the extent that since the submission of its final income statement (FSA030) for the previous financial year or since the budget was prepared (if IPRU(INV) 7.3.7R(2) applies): (1) its level of fixed expenditure changes materially; or (2) its regulated activities comprised within its permission change. 7.3.9 G For the purpose of IPRU(INV) 7.3.5R to IPRU(INV) 7.3.8R, fixed expenditure is expenditure which is inelastic relative to fluctuations in a firm's levels of business. Fixed expenditure is likely to include most salaries and staff costs, office rent, payment for the rent or lease of office equipment, and insurance premiums. It may be viewed as the amount of funds which a firm would require to enable it to cease business in an orderly manner, should the need arise. This is not an exhaustive list of such expenditure and a firm will itself need to identify (taking appropriate advice where necessary) which costs amount to fixed expenditure. 7.3.10 R If a firm has a material proportion of its expenditure incurred on its behalf by another person and such expenditure is not fully recharged by that person then the firm must adjust its relevant fixed expenditure calculation by adding back in the whole of the difference between the amount of the expenditure and the amount recharged. 7.3.11 G For the purpose of IPRU(INV) 7.3.10R, the FCA would consider as material 10% of a firm's expenditure incurred on its behalf by other persons. Professional negligence 7.3.12 R A firm that is a collective portfolio management firm that manages an AIF or an internally managed AIF must: (1) cover the professional liability risks set out in article [x] of the AIFMD level 2 regulation (professional liability risks) (as replicated in IPRU(INV) 7.3.13EU) by either:
Page 70 of 91 Appendix 1 (a) maintaining an amount of own funds in accordance with article [x] of the AIFMD level 2 regulation (additional own funds) (as replicated in IPRU(INV) 7.3.15EU) (the professional negligence capital requirement); or (b) holding professional indemnity insurance and maintaining an amount of own funds to meet the PII capital requirement in accordance with article [x] of the AIFMD level 2 regulation (professional indemnity insurance) (as replicated in IPRU(INV) 7.3.16EU) and IPRU(INV) 7.3.17R; and (2) comply with the qualitative requirements addressing professional liability risks set out in article [x] of the AIFMD level 2 regulation (professional liability risks) (as replicated in [IPRU(INV) 7.3.14EU). [Note: article 9(7) of AIFMD] 7.3.13 EU [Article [x] of the AIFMD level 2 regulation (professional liability risks) to be inserted] 7.3.14 EU [Article [x] of the AIFMD level 2 regulation (qualitative requirements addressing professional liability) to be inserted] 7.3.15 EU [Article [x] of the AIFMD level 2 regulation (additional own funds) to be inserted] 7.3.16 EU [Article [x] of the AIFMD level 2 regulation (professional indemnity insurance) to be inserted] 7.3.17 R If a firm satisfies the requirement in IPRU(INV) 7.3.12R 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. Liquid assets 7.3.18 R For the purposes of this chapter, liquid assets are assets which: (1) are readily convertible to cash within one month; and (2) have not been invested in speculative positions. 7.3.19 G Examples of liquid assets that are acceptable for the purposes of IPRU(INV) 7.3.18R include cash, readily realisable investments that are not held for short-term resale, and debtors. [Note: article 9(8) of AIFMD] 7.4 Method of calculating initial capital and own funds
Page 1:
Consultation Paper CP12/32 Financia
Page 4 and 5:
The Financial Services Authority in
Page 6 and 7:
CP12/32 Implementation of the Alter
Page 8 and 9:
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 105 and 106:
Annex 2 List of consultation questi
Page 107:
Annex 2 November 2012 CP12/32 Imple
Page 111 and 112:
Page 113 and 114:
Page 115:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
ALTERNATIVE INVESTMENT FUND MANAGER
Page 126 and 127:
Annex A Making the Investment Funds
Page 128 and 129:
Page 5 of 91 Appendix 1 (2) a descr
Page 130 and 131:
3.2.5 R An AIFM must, for each AIF
Page 132 and 133:
Page 9 of 91 Appendix 1 (6) the agg
Page 134 and 135:
Page 11 of 91 Appendix 1 (4) the id
Page 136 and 137:
[Note: article 15(1) of AIFMD] this
Page 138 and 139:
(1) a full scope UK AIFM of: (a) a
Page 140 and 141:
Page 17 of 91 Appendix 1 (b) the re
Page 142 and 143: experienced; Page 19 of 91 Appendix
Page 144 and 145: Page 21 of 91 Appendix 1 by the fac
Page 146 and 147: Page 23 of 91 Appendix 1 3.11.5 G T
Page 148 and 149: (Own funds requirement). [Note: art
Page 150 and 151: supplements the meaning of financia
Page 152 and 153: instruments remain in its custody;
Page 154 and 155: supplementing this section] 4. Comm
Page 156 and 157: Annex B Amendments to the Glossary
Page 158 and 159: collective portfolio management fir
Page 160 and 161: Page 37 of 91 Appendix 1 non-listed
Page 162 and 163: BIPRU 730k firm Page 39 of 91 Appen
Page 164 and 165: … Page 41 of 91 Appendix 1 (e) (i
Page 166 and 167: esources only at excessive cost. Pa
Page 168 and 169: Single Market Directive … Page 45
Page 170 and 171: Page 47 of 91 Appendix 1 [Note: art
Page 172 and 173: Page 49 of 91 Appendix 1 7.1.7B In
Page 174 and 175: Page 51 of 91 Appendix 1 [Note: art
Page 176 and 177: [Note: paragraph 1(c) of Annex II o
Page 178 and 179: [Note: paragraph 1(k) of Annex II o
Page 180 and 181: [Note: paragraph 1(r) of Annex II o
Page 182 and 183: Page 59 of 91 (2) the fixed overhea
Page 184 and 185: Page 61 of 91 Appendix 1 amount of
Page 186 and 187: Types of investment firm: BIPRU 50K
Page 188 and 189: The following text is new and is no
Page 190 and 191: Page 67 of 91 Appendix 1 (1) at the
Page 194 and 195: TABLE 7.4 PART I A firm must calcul
Page 196 and 197: Note consistently in respect of any
Page 198 and 199: initial capital (see item 5) if the
Page 200 and 201: Form of qualifying subordinated loa
Page 202 and 203: Annex H Amendments to the Supervisi
Page 204 and 205: Descriptio n of data item Annual re
Page 206 and 207: … Data item SUP 16.12.12R, unless
Page 208 and 209: indicated otherwise. Data item Firm
Page 210 and 211: client assets … Page 87 of 91 App
Page 212 and 213: … Data item SUP 16.12.23R, unless
Page 214 and 215: FSA066 and FSA06 are added - see fo
Page 216 and 217: Liquid assets test 32 Liquid assets
Page 218 and 219: Professional negligence capital req
Page 220 and 221: is not listed, select ‘Other’.
Page 222 and 223: FSA067 Capital adequacy - supplemen
Page 224 and 225: PII capital requirement 5A This is
Page 226 and 227: External validations Validation Dat
Page 228 and 229: CP12/32 Implementation of the Alter
Page 230: CP12/32 Implementation of the Alter
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?