Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.


Status: This chapter was amended on 31 December 2020 as a result of Brexit. However, it is subject to the FCA Prudential Transitional Direction, which means that firms should not comply with these provisions yet. Instead, firms must follow this link and continue to comply with pre-IP completion day requirements https://www.handbook.fca.org.uk/handbook?date=31-12-2020&timeline=True (unless specified otherwise in the Direction). To see a full list of Handbook modules affected, please see Section B of the Annex to the Direction.

IPRU-INV 5.10 Expenditure based requirement

IPRU-INV 5.10.1RRP

1A firm's expenditure based requirement is a fraction of its annual expenditure determined in accordance with IPRU-INV 5.10.2 R.

IPRU-INV 5.10.2RRP
  1. 1: The fraction is 6/52 where:

    1. (a) the firm is an authorised unit trust manager; or

    2. (aa) the firm is an authorised contractual scheme manager; or

    3. (b) the firm acts only as an authorised corporate director of an ICVC; or

    4. (c) the firm is an investment manager (including the operator of an unregulated collective investment scheme in relation to which the firm carries on the activity of an investment manager), unless paragraph 2 applies.

  2. 2: The fraction is 13/52 where the firm is an investment manager as in paragraph 1(c) above, or is a custodian, and the firm either:

    1. (a) itself holds customers' monies or assets; or

    2. (b) procures the appointment as custodian of its customers' monies or assets of an associate of the firm which is not an approved bank.

    [Note: Paragraph 1(a) above includes a firm which acts as an authorised unit trust manager and, in addition, is both or either:

    1. (a) an authorised corporate director of an ICVC; or

    2. (b) an authorised contractual scheme manager]