2.17 Limit on Lending to Directors, Officers or Employees of General Clearing Members

Past version: Effective up to 30 Dec 2013

2.17.1.1 A General Clearing Member must not grant, whether directly or indirectly, any unsecured advance, unsecured loan or unsecured credit facility as defined in the SFR (Licensing and Conduct of Business) to any of its directors (other than a director who is also its employee) or to a person who to its knowledge, is a connected person as defined in the SFA of such director.
2.17.1.2 Subject to Rule 2.17.1.1 and section 162 of the Act, a General Clearing Member must not grant, whether directly or indirectly, any unsecured advance, unsecured loan or unsecured credit facility to its officers (other than a director who is not its employee) or its employees (a "relevant person") which in the aggregate and outstanding at any one time exceeds one year's emoluments of such relevant person.
2.17.1.3 For the purpose of Rule 2.17.1.2, any unsecured advance, unsecured loan or unsecured credit facility granted by a General Clearing Member to any person to purchase, subscribe for or trade in any capital markets product for:—
a. the account of a relevant person of the General Clearing Member;
b. an account in which a relevant person of the General Clearing Member has an interest;
c. an account of any person who acts jointly with, under the control of, or in accordance with, the direction of a relevant person of the General Clearing Member; or
d. an account of any connected person (as defined in the SFA) of a relevant person of the General Clearing Member, where the connected person is not himself a relevant person of the General Clearing Member,
shall be deemed to be an unsecured advance, unsecured loan or unsecured credit facility granted by the General Clearing Member to that relevant person.

Amended on 27 March 200627 March 2006 and 10 August 200710 August 2007.