The Regulator will apply a risk-based assessment according to the categories of investment management companies ("Manager") as set out in Table 1 below.
Table 1 — Categories of Managers
Carrying on business in investment management activities with all types of Clients, including Retail Clients.
Carrying on business in investment management activities with Professional Clients only, without restriction on the number of Professional Clients.
Carrying on business in investment management with no more than 30 Professional Clients (which may be in the form of funds or other investment vehicles) and the total value of the assets under management ("AUM")2 does not exceed US$250 million.
2 In determining the value of the AUM:
(a) Moneys committed by investors but not drawn down should be excluded from the Manager's AUM.
(b) AUM should be based on the net value of the assets being managed. Any leverage to which the managed assets are exposed should be excluded from the Manager's AUM.