IBP Markets Limited

Limits on the record

• Restriction on activities

  Restriction on activities (1) The Firm must not, save as expressly permitted in paragraphs 2 to 5 below, without the prior written consent of the Authority, carry on any regulated activities for which it has a Part 4A permission. (2) The Firm may continue to execute and transmit (as relevant) instructions from an existing client to liquidate any existing position held by the client, or held on their behalf. Any sums payable to an existing client as a result of any instruction described in this paragraph shall not be transmitted or released to the Firm or any Connected Persons. (3) The Firm may continue to liquidate any existing position it holds on its own account. Any sums payable to the Firm as a result of any transaction described in this paragraph shall not be transmitted or released to the Firm or any Connected Persons. (4) The Firm may continue to hold client money and safeguard and administer custody assets held at the date of these Requirements, or which the Firm has accepted or segregated in accordance with paragraph 5 below. (5) Paragraph 1 does not apply to the receipt of new client money or custody assets from, or on behalf of, existing clients by the Firm because of or in relation to the following: (a) Receipt of dividends or coupons. (b) Rights issues. (c) Corporate actions including maturing bonds. (d) Settlement of trades instructed but not settled as at the date of these Requirements. (e) The execution of an instruction from an existing client, as described in paragraph 2. (6) Save as set out in paragraph 5, the Firm must not accept any new client money, custody assets or funds subject to Title Transfer Collateral Arrangements (“TTCA”) whether from existing or new clients in any of its business areas. For the avoidance of doubt, this includes funds held under ‘Model A’ or ‘Model B’ arrangements. (7) The Firm must not, without the prior written consent of the Authority, recommence any regulated activities.

• Retention and notification requirements

  Retention and notification requirements (15) The Firm must secure all books and records and preserve all information and systems in relation to regulated activities carried on by it, and must retain these in a firm and at a location within the UK, to be notified to the Authority in writing within 7 days of the date the Requirements come in to force, such that they (or, so as not to hinder the Firm’s performance of its business activities, true copies of them) can be provided to the Authority, or to a person named by the Authority, promptly on its request. (16) By close of business on the day that is 7 days after the Requirements come into force, the Firm must notify in writing: (a) all its clients; and (b) the banks and custodians the Firm uses to hold its own money and assets, as well as its clients’ money and custody assets and TTCA money and assets; of the terms and effects of these Requirements. This must be in a form to be agreed in advance with the Authority. (17) By close of business on the day that is 2 days after the Requirements come into force, the Firm must publish in a prominent place on its website a notice, the placement and wording of which will need to be agreed in advance with the Authority, setting out the terms and effect of these Requirements. (18) Once the notifications referred to in paragraph 16 have been made, and in any event by close of business on the day that is 10 days after the Requirements come into force, the Firm must provide to the Authority: (a) Copies of the template notifications sent to all recipients referred to in paragraph 16. (b) A list of all parties to whom notifications have been sent pursuant to paragraph 16. (c) Confirmation that, to the best of its knowledge, the Firm has sent notifications pursuant to paragraph 16 to all relevant parties. (19) A person approved to perform a senior management function (“SMF”) at the Firm must send to the Authority by email by 12 noon every Friday (or the next business day should the Friday fall on a Bank Holiday), until such time as it is notified otherwise in writing by the Authority: (a) written confirmation that the Firm is in compliance with these Requirements; and (b) copies of up-to-date statements of all accounts held by the Firm with financial institutions, whether in the UK or elsewhere, and whether in respect of its own assets, client assets or both, showing at least all transactions in the previous week and the balances of the accounts. 1.2. In this First Supervisory Notice the term “Connected Person” means a person (including a body of persons corporate or unincorporate) who has or has had the following relationships with the Firm. The person is: (1) A member of the Firm’s group. (2) A shareholder in the Firm or a member of the Firm’s group. (3) A controller of the Firm or a member of the Firm’s group. (4) An employee of the Firm or a member of the Firm’s Group. (5) A director, officer, manager or agent of the Firm or a member of the Firm’s group. 1.3. These Requirements replace all other requirements imposed on the Firm pursuant to section 55L(5)(a) of the Act. 1.4. These Requirements take immediate effect and remain in force unless and until varied or cancelled by the Authority (either on the application of the Firm or of the Authority’s own volition).

• Asset requirements

  Assets requirement (8) Save as set out in sub-paragraph (5)(d) and (5)(e), paragraph 9 and paragraph 10 the Firm must not take any action which has, or may have, the effect of disposing of, withdrawing, transferring, dealing with or diminishing the value of any of its own assets, or assets held for or on behalf of others, including client money or custody assets. (9) The Firm may continue dealing with or disposing of any of its own assets (whether in the UK or elsewhere) in the ordinary and proper course of business. For the avoidance of doubt, the following would not be in the ordinary and proper course of business for these purposes: (a) The disposal, transfer, or sale in whole or in part of the Firm’s assets, including its client base. (b) The making of any distribution to shareholders whether by way of capital distribution, dividends, or any other payments. (c) Any payment exceeding £2,000, whether as a single transaction or a combination of related transactions, to Connected Persons made without the Authority’s express consent. (d) The making of any gift or loan by the Firm to any party. (e) The entry into any financial reconstruction or reorganisation (10) The Firm may also spend, from its own assets, a reasonable amount on reasonable legal expenses. (11) For the avoidance of doubt any payment exceeding £2,000 whether as a single transaction or a combination of related transactions, to Connected Persons must not be made without the Authority’s express consent. (12) The Firm must segregate £720,000 in cash in an account(s) at an authorised UK bank or credit institution(s) that is held in the Firm’s own name and is controlled solely by the Firm (the Segregated Amount). Such sums being used for the sole purpose of funding the wind down of the business if there is a requirement to do so. The Firm must continue to hold no less than £720,000 in this way and for this purpose, unless otherwise expressly agreed by the Authority. (13) The Segregated Amount referred to in paragraph 12 must not be subject to the rights or interest of any other person (for example any form of security, lien, netting arrangement, right of set-off or preferred creditor arrangement), save where such rights arise due to the terms and conditions routinely applied to such accounts by the relevant credit institution. (14) Paragraphs 8 and 12 are assets requirements within the meaning of section 55P(4)(a) of the Act.

• Onboarding new clients

  1. The Firm must not, except with the Authority’s prior written consent, onboard any new clients (i.e. firms or individuals who were not clients of the Firm at the time the Requirements came into force).

• Assets requirement – transactions with Connected Persons

  1. Save as set out in paragraphs 3 and 4, the Firm must not, without the prior written consent of the Authority take any action which has, or may have, the effect of making a payment (including dividends, loans or payment or transfers of client moneys or assets), gift, transfer of assets or extension of financial accommodation to any Connected Person or any entities associated with the Connected Person (which for the avoidance of doubt includes, but is not limited to, any entity in which the Connected Person is a shareholder, director, member or employee). 2. The Firm may continue to pay salaries of, and commission due to, the Firm’s staff, including its directors, contractors, or other employees, where such salaries and/or commission (or commission mechanisms) have been agreed prior to 17/05/2023. 3. The Firm may undertake a transaction of the type specified at paragraph 2, which is in the ordinary and proper course of its business, provided that the sum or value of such dealings or disposals, whether as a single transaction or a combination of related transactions, does not exceed £2,000.

• Assets requirement – transfer of assets outside of the UK

  1. Save as set out in paragraph 6, the Firm must not without the prior written consent of the Authority, take any action which has, or may have, the effect of transferring any assets it holds or receives, for itself or on behalf of another, to entities or jurisdictions outside of the UK where the value of the transaction, whether as a single transaction or combination of related transactions, exceeds £5,000. 2. The Firm may continue to execute and settle trades on behalf of its clients provided: (a) The Senior Management Function holder authorising the transaction (under paragraph 7) has taken reasonable steps to satisfy themselves of the legitimacy of the transaction. For the avoidance of doubt, this includes taking reasonable steps to ensure that, in undertaking the transaction, the Firm is acting consistently with its obligations under financial crime law and regulation. (b) The Firm complies with its obligations to report to the Authority on transactions it has undertaken set out at Paragraph 8. For the avoidance of doubt execution and settlement of trades on behalf of Connected Persons (or entities associated with a Connected Person) where the sum or value of such dealings or disposals, whether as a single transaction or a combination of related transactions, exceeds £2,000 will require the prior written consent of the Authority under Paragraph 2.

• Senior Management Function holder approval for transactions

  1. The Firm must not in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets, and any funds it holds for, or to the order of, its customers without authorisation by a Senior Management Function holder of the Firm.

• Reporting to the Authority

  1. A Senior Management Function holder of the Firm shall send to the Authority by email: (a) By close of business every working day commencing the day after the day that the Requirements take effect a copy of the Firm’s settlement files for the previous working day. (b) By 12 noon every Friday, until such time as it is notified otherwise in writing by the Authority: • written confirmation that the Firm is acting in compliance with the Requirements at paragraphs 1 to 7; and • up-to-date bank statements for all Firm and client bank accounts, including account statements from all custodians or sub-custodians holding custody assets on behalf of the Firm.

• Secure records

  1. The Firm must secure all books and records and preserve information and systems relating to regulated activities carried on by it and must retain these in a form and at a location, to be notified to the Authority in writing no later than 7 days after the coming into force of these Requirements, such that they can be provided to the Authority, or to a person named by the Authority, promptly on request.

• Definitions and interpretation

  1. In this application the term “Connected Person” means a person (including a body of persons corporate or unincorporate) who has, or has had, the following relationship with the Firm. The person is: (a) a member of the Firm’s group; (b) a shareholder in the Firm or a member of the Firm’s group; (c) a controller of the Firm or a member of the Firm’s group; (d) an employee of the Firm or a member of the Firm’s group; or (e) a director, officer, manager or agent of the Firm or of a member of the Firm’s group.