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  • Arranging Credit and Advising on Credit

    • AU-1.4.47A

      Arranging Credit means making arrangements for a borrower, to enter into a credit facility with a credit provider.

      Added: July 2020

    • AU-1.4.47B

      An investment firm licensee may only arrange for, or advise on credit facilities with a credit provider licensed to provide such facilities.

      Added: July 2020

    • AU-1.4.47C

      Activities that constitute Arranging Credit includes:

      (a) Introducing potential borrowers to a credit provider (refer to Rule AU-1.4.47B);
      (b) Providing the required assistance to potential borrowers to obtain credit, such as the completion of application forms and other processes relevant to such transactions;
      (c) Negotiating terms of credit, including fees and charges;
      (d) Arranging for collaterals or other types of assurances required to be provided by the potential borrower to obtain credit; and
      (e) Arranging for corporate structuring and financing such as the acquisition, disposal, structuring, restructuring, financing or refinancing of a legal entity.
      Added: July 2020

    • AU-1.4.47D

      Advising on Credit means giving advice to a borrower, a potential borrower, or a person in his capacity as an agent of a borrower or a potential borrower, on the merits of entering into a particular credit facility.

      Added: July 2020

    • AU-1.4.47E

      For the purposes of Paragraphs AU-1.4.47A to AU-1.4.47D, a borrower is:

      (a) A natural person who is an accredited investor; or
      (b) A legal person who is an accredited investor or expert investor, and the credit facility in question is provided for use in the business activities of:
      (i) the legal person;
      (ii) a controller of the legal person;
      (iii) any member of the group to which the legal person belongs; or
      (iv) a joint venture of a legal person referred to in (i) – (iii).
      Added: July 2020

    • AU-1.4.47F

      For purposes of Subparagraph AU-1.4.47E (a), investment firm licensees are prohibited from dealing with retail clients and/or expert investors.

      Added: July 2020

    • AU-1.4.47G

      Investment firm licensees are encouraged to consider and give priority to CBB licensed credit providers when arranging for, or advising on credit facilities.

      Added: July 2020