Past version: effective from 21/10/2015 - 20/10/2015
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(1) Subject to Rule 3.7.4, Annual Audited Expenditure constitutes all expenses and losses that arise in the Authorised Person's normal course of business in a 12 month accounting period (excluding exceptional items) which are recorded in the Authorised Person's audited profit and loss account, less the following items (if they are included in the Authorised Person's audited profit and loss account):
(a) staff bonuses, except to the extent that they are non-discretionary;
(b) Employees' and Directors' Shares in profits, including Share Options, except to the extent that they are non-discretionary;
(c) other appropriations of profits, except to the extent that they are automatic;
(d) shared commissions and fees payable that are directly related to commissions and fees receivable, which are included with total revenue;
(e) fees, brokerage and other charges paid to clearing houses, exchanges and intermediate brokers for the purposes of executing, registering or clearing transactions;
(f) any expenses for which pre-payments or advances have already been made to the respective claimant (e.g. pre-paid rent, pre-paid communication charges etc.) and deducted from Capital Resources as illiquid assets;
(g) foreign exchange losses; and
(h) contributions to charities.
(2) For the purposes of (1)(c), a management charge must not be treated as an appropriation of profits.