(1) An Authorised Person to which this Section applies must, at all times, maintain an amount of assets which exceeds its Expenditure Based Capital Minimum in the form of liquid assets.
(2) For the purpose of this Rule, and subject to (3), liquid assets comprise any of the following:
(a) cash in hand;
(b) Money deposited with a regulated bank or Deposit-taker which has a short-term credit rating of A1 or P1 (or equivalent) and above from an ECAI;
(c) demand Deposits with a tenor of one year or less with a bank or Deposit-taker in (b);
(d) time Deposits with a tenor of one year or less which have an option to redeem the Deposit at any time. In such cases, the Deposit amount eligible to be included as liquid assets must be calculated as net of any costs associated with such early redemption;
(e) cash receivable from a regulated clearing house and cash Deposits with such clearing houses, other than any fees or contributions to guarantee or reserve funds of such clearing houses; or
(f) any other asset which may be approved by the Regulator as comprising a liquid asset for the purpose of this Rule.
(3) For the purpose of this Rule, liquid assets do not include:
(a) any Investment, asset or Deposit which has been pledged as security or Collateral for any obligations or liabilities assumed by it or by any other third party; or
(b) cash held in Client Money or Insurance Money accounts.