UK own funds requirement calculator
The same three-way test as the EU, on UK terms. The permanent minimum bands turn on permissions rather than a simple client-money question, and the basic liquid assets requirement is calibrated off the fixed overheads requirement rather than the whole thing.
MIFIDPRU 4.3 · PMR 4.4 · FOR 4.5 · K-factors 4.6–4.15 · liquid assets MIFIDPRU 6 · nothing stored
Same three-way higher-of test under IFR Articles 11 to 15. EU own funds requirement →
Work out your requirement
Runs in your browser · nothing uploadedIf you already have your fixed overheads requirement, enter it directly. If not, the FOR calculator works it out from your financial statements first.
Permanent minimum capital requirement
MIFIDPRU 4.4 · determined by your permissionsYour figures
Enter amounts in the currency selected aboveThree numbers, recalculated every reporting period. Pillar 1 Capital keeps all three current, tracks which one binds as your business moves, and produces the validated IF templates — with free capital monitoring to start.
Create free account →Which number binds tells you where to look
The binding constraint determines what actually moves your capital, and therefore what is worth managing.
Your permissions set the floor
Common for advisory firms at £75,000. The requirement will not move unless your permissions change — but a variation adds or removes a large step immediately, which is why redundant permissions are worth reviewing.
Your cost base drives capital
Every pound of relevant expenditure costs twenty-five pence of capital. It also drives your basic liquid assets requirement under MIFIDPRU 6, so the deduction list in 4.5.3R repays close reading.
Business volume drives capital
Your requirement moves with client assets, orders handled and trading flow, on rolling averages that lag the business. This is the limb that changes without anyone deciding anything.
Rules reviewed 21 August 2026 · MIFIDPRU 4.3, 4.4, 4.5, 4.6 and MIFIDPRU 6
What this calculator does
It compares three figures and applies the MIFIDPRU 4.3 test. It does not produce any of the three.
It doesApply the MIFIDPRU test
- Takes the highest of the permanent minimum requirement, the fixed overheads requirement and the K-factor requirement.
- Drops the K-factor limb for SNI firms.
- Names the binding constraint and shows how far clear the others are.
- Derives the basic liquid assets requirement — one third of the FOR, plus 1.6% of client guarantees.
- Compares your own funds against the requirement where you enter them.
- Flags a shortfall and the notification that follows.
It does notCalculate the inputs
- Calculate your K-factor requirement across the applicable factors.
- Verify your fixed overheads requirement or its deductions.
- Determine your permanent minimum band, which follows from your permissions and any OTF limitation.
- Test the MIFIDPRU 3 composition limits on your own funds.
- Address additional own funds or liquid assets arising from your ICARA process under MIFIDPRU 7.
- Handle transitional provisions still available to former exempt-CAD firms.
Need the fixed overheads figure first?
The UK deduction list is not the EU one — it includes an 80% restriction on own-account clearing charges and treats material decreases as needing FCA permission.
Nothing you type here leaves your browser
The calculation runs entirely in your own browser. No figure you enter is sent to REGREP, written to a log, saved to a database, or passed to any analytics tool.
Reload the page and everything is gone. Continuous monitoring of your requirement happens inside your account, under our data processing agreement.
About the UK own funds requirement
How is the own funds requirement set?
Under MIFIDPRU 4.3 a firm must hold own funds at least equal to the highest of its permanent minimum capital requirement, its fixed overheads requirement, and — for non-SNI firms — its K-factor requirement. An SNI firm takes the higher of the first two only.
Which permanent minimum band applies to me?
£750,000 where you deal on own account, underwrite or place on a firm commitment basis, or operate an organised trading facility without a limitation preventing matched principal trading and dealing on own account. £75,000 where you have no permission to hold client money or securities and carry on only reception and transmission of orders, execution of orders, portfolio management, investment advice, or placing without a firm commitment basis. £150,000 otherwise — including a firm with portfolio management and advice permissions that also holds client money.
How does the liquid assets requirement relate to this?
The basic liquid assets requirement under MIFIDPRU 6 is calibrated by reference to the fixed overheads requirement, at one third of it, plus 1.6% of any guarantees given to clients. It follows the FOR specifically, so a firm whose own funds requirement is set by its K-factors still calculates liquid assets from the FOR.
What if my own funds are below the requirement?
That is a capital shortfall and it is notifiable. Expect the FCA to ask how and by when it will be remedied, and to look at what your ICARA process said about wind-down triggers.
Does holding enough own funds mean I am compliant?
No. MIFIDPRU 3 also sets composition: Common Equity Tier 1 must be at least 56% of the requirement, CET1 plus Additional Tier 1 at least 75%, and all three tiers at least 100%. Those are cumulative floors, and they limit Tier 2 to no more than 25% of the requirement.
Is this the same as the EU calculation?
Structurally yes, in detail no. The permanent minimum bands turn on permissions including OTF limitations, the fixed overheads deduction list differs, and the liquid assets requirement sits in MIFIDPRU 6 rather than in the capital regulation. Do not run one regime’s figures through the other’s rules.
Do you store the figures I enter?
No. Everything is calculated in your browser and discarded when you close or reload the page.
The binding constraint changes. Usually without warning.
Create a free account and watch all three requirements move together, so you find out before your supervisor does.
No card required · free capital monitoring · nothing stored from this calculator