UPRU 1.2 Purpose

The purpose of this sourcebook is to amplify Principle 4 (Financial prudence) which requires a firm to maintain adequate financial resources to meet its designated investment business commitments and to withstand the risks to which its business is subject. This assists in the achievement of the regulatory objectives of consumer protection, market confidence and financial stability.1

This sourcebook also implements certain requirements of the UCITS Directive as amended by the amending Council Directive 2001/107/EC which among other matters imposes capital requirements on a UCITS management company.