1. An AIFM authorised to provide individual portfolio management services shall have in place sound, effective and comprehensive arrangements, strategies and processes to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital that the AIFM considers adequate to cover the nature and level of risks which the AIFM may pose to others and to which the AIFM itself is, or might be, exposed.

2. The arrangements, strategies and processes referred to in paragraph 1 shall be -

(a) appropriate and proportionate to the nature, scale and complexity of the activities of the AIFM, and

(b) subject to regular internal review.

3. An AIFM authorised to provide individual portfolio management services shall complete and submit an ICAAP questionnaire to the Bank on an annual basis in the format published on the Central Bank’s website."

4. In this section:

a. "ICAAP" means internal capital adequacy assessment process, and