Man Group, the world’s largest listed hedge fund business, has confirmed, with the Financial Conduct Authority, the change of its regulatory status from being a full scope group to a limited licence group.

In light of the group’s change in status to a limited licence group, it has submitted a revised internal capital adequacy assessment process (ICAAP) document to the FCA.  The ICAAP is part of the mechanism through which regulated firms are set capital requirements by the FCA. However, the ICAAP submission remains subject to review by the FCA, which is expected in the third quarter of 2013 and could result in higher or lower capital requirements in the future, the firm said.

Meanwhile, Man Group held a capital planning buffer of around $300 million in 2012, which it is no longer required to hold by the FCA. As disclosed in the firm’s 2012 year end results, Man Group’s pro forma surplus capital in excess of the capital planning buffer, as at 1 January 2014, is $370 million, after taking into account the payment of the full year dividend in respect of 2012, which remains subject to shareholder approval.

The board of Man Group will continue to assess the appropriate level of capital required to operate the business from time to time and the potential uses of any surplus capital, the firm said.

Man Group managed $57.0 billion at end-December 2012.