FIRST SCHEDULE
Regulations 3 and 4
Base capital requirements
1.  Subject to paragraph 2, the base capital requirement applicable to a corporation granted or to be granted a capital markets services licence (called in this Schedule the applicant), in respect of a regulated activity in the first column of the table below is set out opposite to that regulated activity, in the second column of that table.
2.  Except in the circumstances mentioned in paragraph 3, where more than one base capital requirement is applicable to the applicant mentioned in paragraph 1, the base capital requirement applicable to the applicant is the higher or (as the case may be) highest of the applicable base capital requirements.
3.  Where an applicant trades only in futures contracts in respect of one or more of the following commodities (called in this Schedule specified commodity futures contracts), the applicant may opt for the applicable base capital requirement corresponding to either item 1 or 3 in the table below:
(a)gold;
(b)any produce, item, goods or article, including an index, right or interest in any produce, item, goods or article.
First column
 
Second column
Regulated activity
 
Base capital requirement applicable
1.Dealing in capital markets products that are securities, units in a collective investment scheme or exchange-traded derivatives contracts and —
 
 
(a)the applicant is a member of an approved clearing house;
 
$5 million
(b)the applicant (not being an applicant to which paragraph (d) or (e) applies) is a member of an approved exchange;
 
$1 million
(c)the applicant (not being an applicant to which paragraph (d) or (e) applies) is not a member of an approved exchange;
 
$1 million
(d)the applicant (not being an applicant to which paragraph (e) applies) does not carry any customer’s positions in those capital markets products, margins or accounts in its own books, and either —
 
$500,000
(i)carries on the business only of soliciting or accepting orders for the purchase or sale of any of those capital markets products from any customer; or
 
 
(ii)accepts money or assets from any customer as settlement of, or a margin for, or to guarantee or secure, any contract for the purchase or sale of those capital markets products by that customer; or
 
 
(e)the applicant —
 
$50,000
(i)does not carry any customer’s positions in those capital markets products, margins or accounts in its own books;
 
 
(ii)deals in those capital markets products only with accredited investors, expert investors or institutional investors;
 
 
(iii)does not accept money or assets from any customer as settlement of, or as a margin for, or to guarantee or secure, any contract for the purchase or sale of those capital markets products by that customer; and
 
 
(iv)does not enter into any transaction with any customer to deal in those capital markets products as principal.
 
 
2.Dealing in capital markets products that are over-the-counter derivatives contracts and —
 
 
(a)the applicant is a member of an approved clearing house;
 
$5 million
(b)the applicant (not being an applicant to which paragraph (c) applies) is not a member of an approved clearing house and deals in those capital markets products with —
 
 
(i)any customer who is not an accredited investor, an expert investor or an institutional investor; or
 
$5 million
(ii)only customers who are accredited investors, expert investors or institutional investors; or
 
$1 million
(c)the applicant does not carry any customer’s positions in those capital markets products, margins, or accounts in its own books, and either —
 
$500,000
(i)carries on the business only of soliciting or accepting orders for the purchase or sale of any of those capital markets products from any customer; or
 
 
(ii)accepts money or assets from any customer as settlement of, or a margin for, or to guarantee or secure, any contract for the purchase or sale of those capital markets products by that customer.
 
 
3.Dealing in capital markets products that are specified commodity futures contracts only and  —
 
 
(a)the applicant is a member of an approved clearing house, where the applicant’s membership is limited to specified commodity futures contracts;
 
$1 million
(b)the applicant (not being an applicant to which paragraph (d) or (e) applies) is a member of an approved exchange;
 
$500,000
(c)the applicant (not being an applicant to which paragraph (d) or (e) applies) is not a member of an approved exchange;
 
$500,000
(d)the applicant does not carry any customer’s positions in specified commodity futures contracts, margins or accounts in its own books, and either —
 
$250,000
(i)carries on the business only of soliciting or accepting orders for the purchase or sale of any of those capital markets products from any customer (not being an applicant to which paragraph (e) applies); or
 
 
(ii)accepts money or assets from any customer as settlement of, or a margin for, or to guarantee or secure, any purchase or sale of those capital markets products by that customer; or
 
 
(e)the applicant —
 
$250,000
(i)does not carry any customer’s positions in those capital markets products, margins or accounts in its own books;
 
 
(ii)deals in those capital markets products only with accredited investors; and
 
 
(iii)does not accept money or assets from any customer as settlement of, or a margin for, or to guarantee or secure, any purchase or sale of those capital markets products by that customer.
 
 
4.Dealing in capital markets products that are spot foreign exchange contracts for the purposes of leveraged foreign exchange trading with or on behalf of —
 
 
(a)any customer who is not an accredited investor, an expert investor or an institutional investor; or
 
$5 million
(b)only customers who are accredited investors, expert investors or institutional investors.
 
$1 million
5.Advising on corporate finance.
 
$250,000
6.Carrying out fund management —
 
 
(a)of any collective investment scheme offered to any investor other than an accredited investor or institutional investor;
 
$1 million
(b)on behalf of any customer other than an accredited investor or institutional investor, whether on a discretionary authority granted by the customer or otherwise;
 
$500,000
(c)solely as a venture capital fund manager; or
 
0
(d)in any other case.
 
$250,000
7.Real estate investment trust management.
 
$1 million
8.Carrying out product financing.
 
$1 million
9.Providing credit rating services.
 
$250,000
10.Providing custodial services.
 
$1 million
[S 668/2018 wef 08/10/2018]
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