investmentmanagersupplementguidance-FCA.docVIP

Financial Services Authority Change of legal status Investment manager – financial resources form – notes Application for Authorisation Change of legal status: Investment manager -financial resources form notes 1 Financial resources Prudential sub-category The Capital Requirements Regulations, (CRR), the Capital Requirements Directive (CRD) and the Markets in Financial Instruments Directive (MiFID) Broadly speaking, the CRR/CRD only applies to firms which MiFID applies. The prudential rules these firms need to follow are contained in the Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU), the Prudential Sourcebook for Investment Firms (IFPRU) and the General Prudential Sourcebook (GENPRU). Applicant firms using the supplement for Investment managers may be applying for permission to carry on regulated activities covered by MiFID. MiFID instruments include shares, debentures, government and public securities, warrants, certificates representing certain securities, units, and derivatives where they relate to financial instruments and certain commodity derivatives. Guidance on MiFID and CRR/CRD categorisation and whether firms will be affected by either directive is set out in the Handbook, see PERG 13: /FS/html/handbook/PERG/13. Full requirements for prudential sub-categories The full requirements for each prudential sub-category of investment management firm are contained in GENPRU, IFPRU and BIPRU rules or IPRU (INV) rules, as applicable. Broadly, UK firms to which MiFID applies will be subject to BIPRU, IFPRU and/or GENPRU. There is also one other category of firm to which MiFID applies which benefits from a special regime under the CRD, namely exempt CAD firms (see notes to 3.1 below). These firms and investment management firms not subject to MiFID are generally subject to the relevant rules in IPRU (INV). A high-level summary of the provisions that apply to those investment management firms subj