Content Options

Content Options

View Options


You are viewing the version of the document as on 2023-11-28.

MIFIDPRU 4.2 Initial capital requirement

MIFIDPRU 4.2.1R
  1. (1)

    1At the point at which a firm is first authorised as a MIFIDPRU investment firm, it must hold initial capital of not less than the amount in (2).

  2. (2)

    The relevant amount is the permanent minimum capital requirement that would apply if the firm had been granted the permissions that it has requested in its application for authorisation.

MIFIDPRU 4.2.2G
  1. (1)

    1The initial capital requirement in MIFIDPRU 4.2.1R applies only at the point at which the FCA first grants permission to a MIFIDPRU investment firm to carry on investment services and/or activities. After a firm has been authorised as a MIFIDPRU investment firm, the permanent minimum capital requirement applies on an ongoing basis instead.

  2. (2)

    Where a MIFIDPRU investment firm applies to vary its permissions to add new investment services and/or activities that would result in an increase in its permanent minimum capital requirement, the FCA would generally expect to refuse the application unless the firm demonstrates that it can comply with the new permanent minimum capital requirement.

  3. (3)

    The FCA’s approach to the application of the initial capital requirement under MIFIDPRU is based on the existence of the permanent minimum capital requirement for MIFIDPRU investment firms. For the avoidance of doubt, this guidance does not affect the FCA’s approach to whether the initial capital requirement under another prudential sourcebook applies on an ongoing basis.