(2) If the Regulatory Authority considers that, because of the nature, scale and complexity of a particular INMA business, the firm firm’s should hold higher paid-up share capital than is required by subrule (1), the authority may at any time require the firm to hold a specified higher amount of paid-up share capital. (for firms that are not companies) is defined in Note Paid-up share capital the glossary. 3.3.4 Net liquid assets requirement (1) An INMA firm must have, at all times, net liquid assets at least equal in value to 25% of the annual operating expenditure. firm’s is the amount by which the total value of the Net liquid assets firm’s liquid assets exceeds the total value of its current liabilities. is defined in rule 3.3.6. Note Annual operating expenditure (2) If the Regulatory Authority considers that because of the nature, scale and complexity of a particular INMA business, the firm firm’s should hold a greater amount of net liquid assets than is required by subrule (1), the authority may at any time require the firm to hold net liquid assets to a specified higher percentage of its annual operating expenditure. 3.3.5 Calculating total liquid assets (1) means: Liquid assets (a) cash on hand, and demand deposits, term deposits accessible on demand, and money otherwise deposited with a bank; and (b) highly liquefiable investments that the Regulatory Authority determines to be appropriate to count as liquid assets (but subject to any direction of the authority about a haircut to be applied).
(2) If the Regulatory Authority considers that, because of the nature, scale and complexity of a particular INMA firm’s business, the firm should hold higher paid-up share capital than is required by subrule (1), the authority may at any time require the firm to hold a specified higher amount of paid-up share capital. Note Paid-up share capital (for firms that are not companies) is defined in the glossary. 3.3.4 Net liquid assets requirement (1) An INMA firm must have, at all times, net liquid assets at least equal in value to 25% of the firm’s annual operating expenditure. Net liquid assets is the amount by which the total value of the firm’s liquid assets exceeds the total value of its current liabilities. Note Annual operating expenditure is defined in rule 3.3.6. (2) If the Regulatory Authority considers that because of the nature, scale and complexity of a particular INMA firm’s business, the firm should hold a greater amount of net liquid assets than is required by subrule (1), the authority may at any time require the firm to hold net liquid assets to a specified higher percentage of its annual operating expenditure. 3.3.5 Calculating total liquid assets (1) Liquid assets means: (a) cash on hand, and demand deposits, term deposits accessible on demand, and money otherwise deposited with a bank; and (b) highly liquefiable investments that the Regulatory Authority determines to be appropriate to count as liquid assets (but subject to any direction of the authority about a haircut to be applied).
QFCRA_9583_VER3.docx