In order to be eligible for this, the following criteria must be met. C1 Is there a time limit on the exposure of maximum 30 days? i.e. the fees due must be paid/received within 30 days and there must be certainty regarding this. C2 Does the client agreement in place permit the firm to take the fees due from the account(s) of the client and to liquidate any positions which it needs to in order to take said fees? C3 Have the funds due not been irrevocably committed in any way or for any use by the firm? C4 Will the firm's own funds not be detrimentally affected in any way? C5 Does the firm have, either by physical control of the client's assets or by other legal mechanisms, the ability to recover its fees from the client's assets, and the client has sufficient liquid assets to cover those fees (with the cash and market value of the assets being be at least twice that of the fee due)?
In order to be eligible for this, the following criteria must be met. C1 Is there a time limit on the exposure of maximum 30 days? i.e. the fees due must be paid/received within 30 days and there must be certainty regarding this. C2 Does the client agreement in place permit the firm to take the fees due from the account(s) of the client and to liquidate any positions which it needs to in order to take said fees? C3 Have the funds due not been irrevocably committed in any way or for any use by the firm? C4 Will the firm's own funds not be detrimentally affected in any way? C5 Does the firm have, either by physical control of the client's assets or by other legal mechanisms, the ability to recover its fees from the client's assets, and the client has sufficient liquid assets to cover those fees (with the cash and market value of the assets being be at least twice that of the fee due)?