SECURITIES AND FUTURES ACT

FORM
(CHAPTER 289)
SECURITIES AND FUTURES (FINANCIAL AND MARGIN REQUIREMENTS
FOR HOLDERS OF CAPITAL MARKETS SERVICES LICENCES)
REGULATIONS (Rg 13)
2
REGULATION 27(1)(b) AND 9(b)

STATEMENT OF FINANCIAL RESOURCES, TOTAL

RISK REQUIREMENT AND AGGREGATE
INDEBTEDNESS

Name of the holder of a capital markets services licence: __________________

Statement as at: (dd-mmm-yyyy)

$ $
(I) BASE CAPITAL/NET HEAD OFFICE FUNDS
(1) Paid-up capital
(a) ordinary shares
(b) irredeemable and non-cumulative preference shares
(2) Reserve fund
(3) Unappropriated profit or loss

Less: (a) Dividend declared

(b) Interim loss

Base Capital

(4) Net head office funds

Total Base Capital or Net Head Office Funds

(II) FINANCIAL RESOURCES/

ADJUSTED NET HEAD OFFICE FUNDS
(1) Base Capital or Net Head Office Funds
Add:
(a) paid-up irredeemable and cumulative preference share capital
(b) paid-up redeemable preference share capital
(c) qualifying subordinated loans used on a temporary basis
(d) revaluation reserves
(e) other reserves
(f) interim unappropriated profit
(g) collective impairment allowance
Less:
(2) Deductions from Financial Resources
(a) intangible assets
(b) future income tax benefits
(c) pre-paid expenses
(d) charged assets
(e) unsecured amounts due from directors and connected persons
(f) unsecured amounts due from related corporations
(g) other unsecured loans and advances
(h) capital investments in subsidiary or associate
(i) other non-current assets
(j) other assets not convertible to cash within 30 days
Total Deductions from Financial Resources
Financial Resources or Adjusted Net Head Office Funds (“FR”)

(III) TOTAL RISK REQUIREMENT

(A) OPERATIONAL RISK REQUIREMENT

(a) Operational
(b) Other operational risk requirement
Total Operational Risk Requirement

(B) COUNTERPARTY RISK REQUIREMENT

(a) Delivery-versus-payment transactions

(i) contracts unsettled at end of or after due date
(ii) open contracts traded on an exchange other than an
approved exchange or a recognised exchange
(iii) contract which is offset by contra contract or forced-sale or
buying-in transaction
(b) Free deliveries
(c) Product financing
(d) Repurchase, reverse repurchase, specified products borrowing
and lending agreements
(e) Transactions in marginable products traded on an exchange or
novated to a clearing facility
(f) Over-the-counter derivatives transactions
(g) Deposits with exchange, clearing house or clearing facility or
member of an exchange, clearing house or clearing facility
(h) Interest charged on amounts owed by counterparty
(i) Amount owed by counterparty in relation to subscription to
specified products
(j) Off –balance sheet commitment
(k) Other counterparty risk requirement
Total Counterparty Risk Requirement

(C) POSITION RISK REQUIREMENT

(a) Equity
(b) Equity derivative
(c) Debt
(d) Debt derivative
(e) Commodity
 (f) Commodity derivative
(g) Foreign exchange
(h) Other position risk requirement
Total Position Risk Requirement

(D) LARGE EXPOSURE RISK REQUIREMENT

(a) Counterparty large exposure requirement

(b) Issuer large exposure requirement
(c) Other large exposure requirement
Total Large Exposure Risk Requirement

(E) UNDERWRITING RISK REQUIREMENT

(a) Underwriting/ placement

(b) Other underwriting risk requirement
Total Underwriting Risk Requirement

(F) FIRM-SPECIFIC CAPITAL REQUIREMENT

Firm-specific capital requirement

Total Risk Requirement (“TRR”)

FR/TRR Ratio: FR/TRR x 100%

(IV) AGGREGATE INDEBTEDNESS

(1) Total Liabilities
Less:
(a) amount payable on open contracts
(b) deferred income taxes payable
(c) trust creditors
(d) amount payable to customers arising from dealing in capital
markets products that are futures contracts
(e) amount payable to customers in connection with assets or
moneys received on account of the customers arising from
dealing in capital markets products other than futures contracts
and maintained in trust accounts
(f) any liabilities fully secured by assets excluded from financial
resources and adjusted net head office funds
(g) qualifying subordinated loans
(h) paid-up redeemable preference share capital
Aggregate Indebtedness

(2) Financial Resources or Adjusted Net Head Office Funds

Add:
Qualifying letters of credit (restricted to 50% of total risk
requirements)
Less:
Total risk requirements
Aggregate Resources

Percentage of Aggregate Indebtedness to Aggregate Resources

(V) ADJUSTED ASSETS
(1) Adjusted Assets
(a) On-balance sheet assets
(b) Off-balance sheet items
Less:
(c) Deductions from Financial Resources
(d) Corporation’s own balances
(i) Cash and cash equivalents
(ii) Deposit with bank licensed under the Banking Act or
merchant bank, of credit quality grade 1
(e) Receivables owed by a related corporation which are due for
settlement within 3 months and not past due
(f) Fee receivables owed by collective investment schemes, closed-
end funds or customers’ accounts which are managed by the
CMSL and due for settlement within 3 months and not past due
Adjusted Assets

Average Adjusted Assets

(2) Adjusted Assets Threshold

STATEMENT BY HOLDER OF CAPITAL

MARKETS SERVICES LICENCE

This statement is submitted on behalf of (Name of the licensee) by (Name of

Director), who certifies that:

(a) the above statement has, to the best of his knowledge and belief, been
drawn up to comply with the requirements of the Securities and
Futures Act (Cap. 289) and the requirements as may be prescribed or
specified by the Authority, in particular, regulation 27(4) of the
Securities and Futures (Financial and Margin Requirements for
Holders of Capital Markets Services Licences) Regulations (Rg 13);
and

(b) the information contained in the above statement is to the best of his
knowledge and belief true and correct.

Dated this (dd/mm/yyyy): _____________