IPRU-INV 11.2 MAIN REQUIREMENTS

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 UK CRR1 (Own funds based on fixed overheads) (as replicated in IPRU-INV 11.3.3AUK1)); 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 UK CRR1 (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]