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UPRU 1.1 Introduction

Application

UPRU 1.1.1 R

1Subject to 1.1.4R, this3 sourcebook and any provisions of the Interim Prudential sourcebook for investment businesses incorporated into this sourcebook by reference, apply to every UCITS firm.

3
UPRU 1.1.2 G

Firms are reminded that a UCITS management company can be either:

  1. (1)

    a UCITS firm; or

  2. (2)

    a UCITS investment firm.

UPRU 1.1.3 G

This sourcebook only applies to UCITS firms. UCITS investment firms are BIPRU limited licence firms and the prudential requirements for those firms are set out in the Prudential sourcebook for banks, building societies and investment firms and the General prudential sourcebook. The difference between the two types of UCITS management companies is that a UCITS investment firm in addition to carrying on the activities permitted by Article 6(2)2 of the UCITS Directive (scheme management), may also carry on the activities permitted by Article 6(3)2 such as portfolio management.

2 2
  1. (2)

    IFPRU limited licence firms and the prudential requirements for those firms are set out in the Prudential sourcebook for Investment Firms and the EU CRR.

The difference between the two types of UCITS management companies is that a UCITS investment firms in addition to carrying on the activities permitted by Article 6(2) of the UCITS Directive (scheme management), may also carry on the activities permitted by Article 6(3) such as portfolio management.

UPRU 1.1.4 R

3This sourcebook does not apply to a UCITS firm to which IPRU (INV) 11 (Collective Portfolio Management Firms) applies.

UPRU 1.1.5 G

3 IPRU (INV) TP 5 allows a UCITS firm that is authorised as such on or before 21 July 2013 to continue to comply, if it so wishes, with UPRU rather than IPRU (INV) 11 until 21 July 2014 or the date it becomes a UK AIFM (if earlier).

UPRU 1.1.6 G

3This sourcebook will be deleted in its entirety on 22 July 2014 and, from this date, a UCITS firm must comply with IPRU (INV) 11.

UPRU 1.2 Purpose

UPRU 1.2.1 G
  1. (1)

    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 statutory objectives4 of consumer protectionand protecting and enhancing the integrity of the UK financial system.4

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  2. (2)

    This sourcebook also implements certain requirements of the UCITS Directive which among other matters imposes capital requirements on a UCITS management company.

    2