The expenditure requirement is calculated as one quarter of a fund administrator's fixed overheads of the preceding year and for the purpose of identifying its expenditure requirement, a fund administrator shall calculate its fixed overheads for the preceding year by -
(a) using figures resulting from the applicable accounting framework, subtracting the following items from the total expenses after distribution of profits to shareholders in its most recent audited financial statements, or, where audited statements are not available, in annual financial statements validated by the Bank:
(i) fully discretionary staff bonuses;
(ii) employees', directors' and partners' shares in profits, to the extent that they are fully discretionary;
(iii) other appropriations of profits and other variable remuneration, to the extent that they are fully discretionary;
(iv) shared commission and fees payable which are directly related to commission and fees receivable, which are included within total