MIFIDPRU 4.4 Permanent minimum capital requirement

1. (1)

   1Where a MIFIDPRU investment firm has permission to carry on any of the investment services and/or activities in (2), its permanent minimum capital requirement is £750,000, unless MIFIDPRU 4.4.6R applies2.

2. (2)

   The relevant investment services and/or activities are:

   1. (a)

      dealing on own account;

   2. (b)

      underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis; or

   3. (c)

      operating an organised trading facility, if the firm is not subject to a limitation that prevents it from carrying on the activities otherwise permitted by MAR 5A.3.5R.

3. (3)

   2Where a MIFIDPRU investment firm is appointed to act as a depositary of an unauthorised AIF in accordance with FUND 3.11.10R(2), its permanent minimum capital requirement is £750,000, unless MIFIDPRU 4.4.6R applies.

1. (1)

   1Where a MIFIDPRU investment firm satisfies the conditions in (2), its permanent minimum capital requirement is £150,000.

2. (2)

   The relevant conditions are:

   1. (a)

      the firm has permission for any of the following:

      1. (i)

         operating a multilateral trading facility;

      2. (ii)

         operating an organised trading facility, if the firm is subject to a limitation that prevents it from carrying on the activities otherwise permitted by MAR 5A.3.5R;

      3. (iii)

         holding client money or client assets in the course of MiFID business; 2

   2. (b)

      the firm does not have permission for any of the following:

      1. (i)

         dealing on own account;

      2. (ii)

         underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;

      3. (iii)

         operating an organised trading facility, if the firm is not subject to a limitation that prevents it from carrying on the activities otherwise permitted by MAR 5A.3.5R; and2

   3. (c)

      2the firm is not appointed to act as a depositary in accordance with FUND 3.11.10R(2) or COLL 6.6A.8R(3)(b)(i).

1. (1)

   1Where a MIFIDPRU investment firm satisfies the conditions in (2), its permanent minimum capital requirement is £75,000.

2. (2)

   The relevant conditions are:

   1. (a)

      the only investment services and/or activities that the firm has permission to carry on are one or more of the following:

      1. (i)

         reception and transmission of orders in relation to one or more financial instruments;

      2. (ii)

         execution of orders on behalf of clients;

      3. (iii)

         portfolio management;

      4. (iv)

         investment advice; or

      5. (v)

         placing of financial instruments without a firm commitment basis; and

   2. (b)

      the firm is not permitted to hold client money or client assets in the course of MiFID business; and2

   3. (c)

      2the firm is not appointed to act as a depositary in accordance with FUND 3.11.10R(2) or COLL 6.6A.8R(3)(b)(i).

2Where a MIFIDPRU investment firm is appointed to act as the depositary of a UK UCITS or an authorised AIF, its permanent minimum capital requirement is £4 million.