INMA 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).
(2) In calculating the total value of the firm's liquid assets, no amount may be allowed for any of the following:
(a) fixed assets;
(b) any investment, asset or deposit that has been pledged as security or collateral for an obligation or liability;
(c) receivables;
(d) cash held in a client bank account;
(e) deferred tax assets;
(f) unlisted equity investments;
(g) any investment by a subsidiary of the firm in the firm's own shares;

Note Subsidiary is defined in the glossary.
(h) holdings of investments that are categorised as level 3 under the IFRS fair value hierarchy;
(i) investments in, and loans to, affiliates and related persons.
(3) For this rule:

Note Affiliate and related person are defined in the Glossary.
Amended by QFCRA RM/2019-4 (as from 1st January 2020).