Regulatory Framework Policy

REGULATORY FRAMEWORK & GOVERNANCE

Version 2.0 | Last Updated: 20 March 2026

The Amplitude Fund is built on institutional-grade infrastructure. We have deliberately chosen a regulatory framework that prioritises investor protection, operational resilience and full transparency - the same structure used by the world's leading alternative investment managers.

This is not a "light touch" arrangement. Every investment decision, every risk control, and every client interaction operates within the regulatory perimeter of the UK Financial Conduct Authority through an authorised full-scope Alternative Investment Fund Manager.

1. The Alternative Investment Fund Manager (AIFM)

Falcon Investment Management Ltd is the Fund's appointed AIFM, responsible for portfolio management, risk management, and regulatory compliance.

Falcon operates under the full requirements of the UK Alternative Investment Fund Managers Directive (UK AIFMD) and MiFID II, including capital adequacy, conduct of business, remuneration, and regulatory reporting obligations.

2. The Fund Structure

This "onshore manager / offshore fund" model is the global standard for alternative investment strategies. It combines the flexibility and tax neutrality of the Cayman Islands with the rigorous oversight of UK FCA-regulated management.

Why is this an AIF, not a UCIS?

The Fund meets the definition of an Alternative Investment Fund under UK AIFMD: it is a collective investment undertaking that raises capital from investors, invests in accordance with a defined policy, and is not a UK UCITS. Because the Fund is managed by Falcon, an FCA-authorised full-scope AIFM, it operates within the UK's regulated AIFM framework. The appropriate regulatory classification is therefore AIF - reflecting the institutional governance and regulatory accountability that exist - rather than UCIS, which implies an absence of regulatory oversight.

It is important to note that the Fund is not itself an FCA-authorised investment scheme. Investments are not covered by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS). The investor protections arise from the AIFM regulatory framework, not from direct fund authorisation.

3. Service Providers

The Fund Administrator serves as the independent golden source for NAV calculation, investor records, reconciliations, and AML/KYC procedures. This separation of duties - strategy provider, investment manager, administrator, and custodian - is a core governance principle of institutional fund management.

4. Securities Identification (ISINs)

The Fund's share classes are registered with the Association of National Numbering Agencies (ANNA) for institutional settlement and transparency:

Karl Finance LLP is the Fund's sponsor and technology provider.

We are the architects of the strategy. We developed the intellectual framework (The Volatility Decade), we own the proprietary market intelligence system (VISOR - subject to pending patent applications including UK IPO filing GB2516800.6 and related filings), and we hold the exclusive licence to the Wraithbot algorithmic trading suite that powers the Fund's execution.

Karl Finance LLP is not authorised or regulated by the Financial Conduct Authority.

The regulated activity of managing investments is conducted by Falcon. This is achieved through a formal AIFM/Secondment Agreement, under which Karl Finance's portfolio manager operates within Falcon's FCA-authorised perimeter.

The Amplitude Fund is available exclusively to Professional Investors.

Falcon Investment Management Ltd's FCA permissions restrict all investment management and advisory activities to Professional Clients and Eligible Counterparties as defined by the FCA.

This restriction is a regulatory requirement, not a commercial choice.

Important: The content on this website constitutes a financial promotion. It has been approved for issue by Falcon Investment Management Ltd (FRN: 673552), which is authorised and regulated by the Financial Conduct Authority.

This content is directed at Professional Clients, Eligible Counterparties, and (where permitted under applicable exemptions) Certified High Net Worth Individuals and Certified Sophisticated Investors. It is not approved for communication to Retail Clients. If you do not meet these criteria, you should not rely on any information contained on this website.

We maintain rigorous Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) controls in accordance with:

All investors are subject to Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures prior to subscription, administered by the Fund's independent Cayman administrator. We reserve the right to decline any subscription where satisfactory identification of the beneficial owner cannot be established.

Karl Finance LLP and Falcon Investment Management Ltd maintain a Conflicts of Interest Policy to identify, manage, and where necessary disclose any conflicts that may arise in the course of managing the Fund. A summary of this policy is available at karl.finance/conflicts-of-interest.

If you have a complaint regarding the management of the Fund, please contact:

Compliance Officer Falcon Investment Management Ltd 64 North Row, London W1K 7DA Email: compliance@falconcapital.co.uk Telephone: +44 20 3827 0275

You may also contact Karl Finance directly:

Karl Finance LLP 167-169, Fifth Floor, Great Portland Street, London W1W 5PF Email: info@karl.finance Telephone: +44 20 3488 2555

If you are an eligible complainant and your complaint is not resolved to your satisfaction, you may have the right to refer the matter to the Financial Ombudsman Service. Please note that the FOS has jurisdiction over regulated activities carried out by FCA-authorised firms; its jurisdiction does not extend to the Cayman-domiciled fund structure itself. Full details of our complaints procedure are available at karl.finance/complaints-policy.

The value of investments can go down as well as up. You may get back less than you invested. Past performance is not a reliable indicator of future results. Capital is at risk.

The Fund is an Alternative Investment Fund managed by an FCA-authorised AIFM. It is not an FCA-authorised investment scheme. Investments are not covered by the FSCS or the FOS. Strategies involving derivatives and leverage can magnify gains and losses. You may lose all of your invested capital.