IPRU-INV 11.2 MAIN REQUIREMENTS

Collective portfolio management firm

IPRU-INV 11.2.1R

A firm must:

  1. (1)

    when it first becomes a collective portfolio management firm or a collective portfolio management investment firm, hold initial capital of not less than the applicable base own funds requirement (in line with IPRU-INV 11.3.1R);

  2. (2)

    at all times, maintain own funds which equal or exceed:

    1. (a)

      the higher of:

      1. (i)

        the funds under management requirement (in line with IPRU-INV 11.3.2R); and

      2. (ii)

        the amount specified in article 97 of the EU CRR (Own funds based on fixed overheads) (as replicated in IPRU-INV 11.3.3AEU)); plus

    2. (b)

      whichever is applicable of:

      1. (i)

        the professional negligence capital requirement (in line with IPRU-INV 11.3.11G(1)(a)); or

      2. (ii)

        the PII capital requirement (in line with IPRU-INV 11.3.11G(1)(b)); and

  3. (3)

    at all times, hold liquid assets (in line with IPRU-INV 11.3.17R) which equal or exceed:

    1. (a)

      the higher of:

      1. (i)

        the funds under management requirement (in line with IPRU-INV 11.3.2R) less the base own funds requirement (in line with IPRU-INV 11.3.1R); and

      2. (ii)

        the amount specified in article 97 of the EU CRR (Own funds based on fixed overheads); plus

    2. (b)

      whichever is applicable of:

      1. (i)

        the professional negligence capital requirement (in line with IPRU-INV 11.3.11G(1)(a)); or

      2. (ii)

        the PII capital requirement (in line with IPRU-INV 11.3.11G(1)(b)).

[Note: article 9(5) and 9(7) of AIFMD and article 7(1)(a)(iii) of the UCITS Directive]

Professional negligence

IPRU-INV 11.2.2G
  1. (1)

    The professional negligence capital requirement applies to a full-scope UK AIFM which, in line with IPRU-INV 11.3.11G(1)(a), covers professional liability risks by way of own funds.

  2. (2)

    The PII capital requirement applies to a full-scope UK AIFM which, in line with IPRU-INV 11.3.11G(1)(b), decides to cover professional liability risks by professional indemnity insurance.