Read our help text for RMA-D2 Financial resources.
Financial resources (Non-MIFID personal investment firms)
1. Paid up share capital (excluding preference shares redeemable by shareholders within two years) is all ordinary share capital and eligible preference share capital that the firm has reported in its balance sheet (20A & 21A in RMA-A).
2. Share premium account – This must be the same figure inserted in (22A) of RMA-A.
3. Audited retained profits are the accumulated total of all retained profit. (Please note that if your firm qualifies for the statutory audit exemption, you can include unaudited profits in this box).
4. Verified interim profits are the total interim profits (net of tax and dividends)
5. Revaluation reserves are unrealised reserves arising from the revaluation of fixed assets.
6. Short term subordinated loans – subordinated loans can only be eligible capital if they meet all of the criteria set out in IPRU 13.12.4 - 13.12.5A. Please see our FAQs for further information on the criteria which must be met to enable a subordinated loan to be used as eligible capital.
7. Debt capital – This refers to funds that have been supplied by lenders (on a long-term basis) and can form part of a firms’ capital structure.
8. Balances on proprietors' or partners' capital accounts – This must be the same figure inserted in Box 26 of RMA-A.
9. Balances on proprietors' or partners' current accounts – The current balance of any current accounts in the name of the sole trader or partners.
10. Personal assets – Sole traders and partnerships may use personal assets as eligible capital unless:
i) These assets are being used to meet liabilities relating to other non-regulatory activities (including personal and other business activities).
ii) The firm holds client money or other client assets.
11. Less intangible assets – This must be the same figure inserted in (1B) of RMA-A.
12. Less material year losses should be inserted in this box when they have not already been incorporated into the firm's capital or current accounts.
13. Less excess of drawings over profits for a sole trader or partnership – Firms should include any excess capital removed from the firm over and above any profit made by the firm for deduction.
14. PASS loan adjustments – Firms should include any adjustments from the PASS loan scheme.
15. Own funds – This figure is derived using the following formula:
(1A + 2A + 3A + 4A + 5A + 6A + 7A + 8A + 9A + 10A – 11A – 12A – 13A + 14A).
(Please note that this must be the same as the Own funds entered in (16A) of RMA-D1).
Test 1A and Test 2 – Questions 18 to 35
B3 low resource firms are not subject to this requirement, and therefore must leave these fields blank.
All other personal investment firms that require assistance in calculating their Adjusted Net Current Assets Requirement and Expenditure Based Requirement should refer to our FAQs.
Firms subject to reporting Test 2 q 25 – 34 should use IPRU (INV) Table 13.2.3[1].