Prudential categories for asset managers

Your prudential category depends on your scope of permission and the risks to your business model. Asset managers are usually covered under BIPRU, IFPRU, or/and IPRU-INV prudential sourcebooks.

This tool is intended to help businesses identify the key regulatory requirements that determine their prudential category. Please click on the option which describes your business.

What is your firm type?

You are a small authorised AIFM as defined in regulation 2 of the Alternative Investment Fund Managers Regulations 2013.

Please see IPRU-INV 11.1.2AG to determine your prudential category.

What type of full scope UK AIFM are you?

For the meaning of 'internal AIFM' please refer to Regulation 4(3)(b) of the Alternative Investment Fund Managers Regulations 2013.

Please also see PERG 16 Question 3.6 for further clarification on the distinction between the two.

You are an internally managed AIF and applying to manage an AIF only as per FUND 1.4.2R (Internally managed AIFs).

Your base own funds requirement is EUR 300,000. You are a Collective Portfolio Management Firm (CPM). Please see IPRU-INV Chapter 11.3.1R for further details.

Are you applying to manage an AIF only?

Please see FUND 1.3.4G for further guidance.

Your base own funds requirement is EUR 125,000. You are a Collective Portfolio Management Firm (CPM). Please see IPRU-INV Chapter 11.3.1R for further details. 

Are you applying to manage an AIF in addition to either managing a UCITS or 'Establishing, Operating and Winding up a CIS' or both?

Please see PERG 16.5 'How AIFMD affects other regulated activities' and PERG 2.7.13AG 'Managing a UCITS, managing an AIF, and establishing etc collective investment schemes'.

 

Your base own funds requirement is EUR 125,000. You are a Collective Portfolio Management Firm (CPM). Please see IPRU-INV Chapter 11.3.1R for further details.

Are you applying for Part 4A permission to undertake any of the permitted 'top up' MiFID activities, such as individual portfolio management or advising on investments, in addition to managing an AIF and/ or UCITS and/ or 'Establishing, Operating and Winding up a CIS'?

Please see FUND 1.3.4G (4) and FUND 1.4.3R(3) to 1.4.3R(6) for the additional activities an AIFM may perform.

Your base own funds requirement is EUR 125,000. You are a Collective Portfolio Management Investment Firm (CPMI). Please see IPRU-INV Chapter 11.3.1R for further details.

Please review your answers. It might be that this section is not relevant for you.

Are you a small AIFM that meets the criteria in regulation 10(2), or 10(3) of the Alternative Investment Fund Managers Regulations 2013 to be a small registered UK AIFM?

No prudential requirements apply. Small registered UK AIFMs are not authorised persons in relation to their activities as an AIFM.

For more information see PS13/5.

Are you a small AIFM that meets the criteria in regulation 10(4) of the Alternative Investment Fund Managers Regulations 2013 (SI 2013/1773), and so will be both a small registered UK AIFM and either a EuSEF Manager or a EuVECA Manager under Regulation (EU) No 2013/345/EC as amended by Regulation (EU) 2017/1991?

Managers of qualifying venture capital funds or qualifying social entrepreneurship funds shall have sufficient own funds at all times. The Regulation requires managers of EuVECA or EuSEF to have an initial capital of EUR 50,000.

Please review your answers. It might be that this section is not relevant for you.

Are you applying to manage UCITS only?

Please refer to the definition of UCITS firm in our Handbook glossary.

Your base own funds requirement is EUR 125,000. You are a Collective Portfolio Management Firm (CPM). Please see IPRU-INV Chapter 11.3.1R for further details.

Are you applying to manage a UCITS in addition to either manage an AIF or 'Establishing, Operating and Winding up a CIS' or both?

Please refer to the definition of UCITS firm in our Handbook glossary.

Your base own funds requirement is EUR 125,000. You are a Collective Portfolio Management Firm (CPM).

Please see IPRU-INV Chapter 11.3.1R for further details.

Are you applying for Part 4A permission to undertake any of the permitted 'top-up' MiFID activities, such as individual portfolio management or advising on investments as permitted by article 6(3) of the UCITS Directive, in addition to managing a UCITS and/or managing an AIF and/or 'Establishing, Operating and Winding up a CIS'?

Your base own funds requirement is EUR 125,000. You are a Collective Portfolio Management Investment Firm (CPMI).

Please see the definition of UCITS Investment Firm in our Handbook glossary and IPRU-INV Chapter 11.3.1R for further details. 

Please review your answers. It might be that this section is not relevant for you.

Are you applying only for Part 4A permission of 'Establishing, Operating and Winding up a CIS'?

Please see FUND 1.3.2G for types of fund managers outside the scope of European legislation, PERG 16.5 'How AIFMD affects other regulated activities' and PERG 2.7.13AG 'Managing a UCITS, managing an AIF, and establishing etc collective investment schemes'.

Your base own funds requirement is £5,000. You are subject to IPRU-INV Chapter 5.

Are you applying for Part 4A permission of 'Establishing, Operating and Winding up a CIS' alongside other permissions in order to allow you to manage the assets of a CIS (eg managing investments, advising in respect etc)?

See PERG 13.5, q.43 for further clarification.

Your base own funds requirement is £5,000. You are subject to IPRU-INV Chapter 5 and exempt from MiFID under article 2.1(i).

Please review your answers. It might be that this section is not relevant for you.