(1) A capital management company must 1. be equipped with initial capital of a) at least EUR 300,000, where it is an internal capital management company, b) at least EUR 125,000, where it is an external capital management company, 2. have additional own funds of at least 0.02 percent of the amount by which the value of the investment funds managed exceeds EUR 250 million, where the value of the investment funds managed by the AIF capital management company or by the external UCITS capital management company exceeds EUR 250 million; the required total sum of the initial capital and the additional own funds may not, however, exceed EUR 10 million.
(2) An AIF capital management company or an external UCITS capital management company need not satisfy the requirement to provide additional own funds under subsection (1), first sentence, point 2, up to an amount of 50 percent, where it holds a guarantee of the same amount provided by one of the following institutions or undertakings: 1. a credit institution within the meaning of Article 4(1), point 1, of Regulation (EU) No 575/2013, or an insurance undertaking, with its seat in a member state of the European Union or in another contracting state of the Agreement on the European Economic Area, or 2. a credit institution or insurance undertaking with its seat in a third country, where it is subject to supervisory provisions that, in the view of the Federal Institute, are equivalent to those of Union law.
(3) For the purposes of subsection (1), the investment funds managed by the capital management company, including investment funds whose management it has entrusted to third parties, are regarded as investment funds of the capital management company; investment funds that the external capital management company manages on behalf of third parties are not taken into account. For the purposes of subsections (1) and (4), only the provisions for the external UCITS capital management company apply to an external AIF capital management company that is also an external UCITS capital management company.
(4) Irrespective of the own-funds requirement under subsection (1), the AIF capital management company must at all times have own funds of at least the amount required under Article 9(5) of Directive 2011/61/EU, and the external UCITS capital management company must at all times have own funds of at least the amount required under Article 7(1), letter a, point iii, of Directive 2009/65/EC. Where annual financial statements are not yet available for the first completed business year, the expenses stated in the business plan for the current year for the corresponding items must be used. The Federal Institute may 1. increase the requirements under the first and second sentences, where this is indicated by an expansion of the business activities of the AIF capital management company or the external UCITS capital management company, or 2. reduce, at the request of the capital management company, the costs to be used in calculating the ratio under the first and second sentences for the current business year, where this is indicated by a demonstrably significant reduction, compared with the previous year, of the business activities of the AIF capital management company or the external UCITS capital management company in the current business year. AIF capital management companies and external UCITS capital management companies must transmit to the Federal Institute the particulars and evidence necessary to verify the ratio and compliance with the requirements under the first and third sentences.
(5) Where retirement provision contracts are concluded under section 20(2), point 6, or section 20(3), point 8, or minimum payment undertakings are given under section 20(2), point 7, external capital management companies must, in the interest of satisfying their obligations towards investors and shareholders, in particular in the interest of the security of the assets entrusted to them, have adequate own funds.
(6) To cover the potential professional liability risks arising from the activities that AIF capital management companies may pursue under Directive 2011/61/EU, AIF capital management companies must have 1. additional own funds to adequately cover potential liability risks arising from professional negligence, or 2. insurance appropriate to the risks covered, against liability arising from professional negligence. In the case of the first sentence, point 2, the insurer must be obliged, in the insurance contract, to notify the Federal Institute without delay, via an electronic communication procedure provided by it, of the commencement and the termination or cancellation of the insurance contract, and of circumstances impairing the prescribed insurance cover.
(7) Own funds, including the additional own funds under subsection (6), point 1, must be held either in liquid funds or invested in assets that can be converted into bank deposits in the short term, and that do not contain speculative positions.
(8) For AIF capital management companies, the criteria concerning the risks that must be covered by the additional own funds or the professional indemnity insurance, the conditions for determining the adequacy of the additional own funds or of the cover provided by the professional indemnity insurance, and the approach for determining ongoing adjustments of the own funds or the cover, are governed by Articles 12 to 15 of Delegated Regulation (EU) No 231/2013.
Subdivision 2
General Conduct and Organisational Obligations