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Guidance

1. Part 2 (Basic Requirements) of this Chapter imposes a number of basic requirements, including the following core requirements:
a. for an Authorised Person in Category 1, 2, 3A or 5, the components of its Capital Resources should at all times equal or exceed the thresholds specified in Section 3.16; and
b. for an Authorised Person in Category 3B, 3C or 4, its Capital Resources should at all times equal or exceed the amount of its Capital Requirement.
2. In particular, note that:
a. Part 3 (Calculating Capital Requirements) applies to all firms, but with differentiated calculations for the Capital Requirement for the various Categories of Authorised Persons, as prescribed in Sections 3.4 and 3.6;
b. Part 4 (Calculating Capital Resources) applies to all firms; and
c. within Part 4, an exemption from the calculation of T2 Capital in relation to firms authorised to Manage a Profit Sharing Investment Account which is a PSIAu is prescribed in Rule 3.12.9.