Document ID: chunk:federal_register_of_legislation:F2023C00831:reg:5:p2
Version: federal_register_of_legislation:F2023C00831
Segment Type: reg
Provision Reference: reg 5 (pt 2/11)
Character Range: 3879–6416

would show that the licensee was not meeting the requirements in subparagraphs (e)(i) and (ii); and
(e) have the persons mentioned in the subparagraphs (as applicable) of paragraph (b) certify in writing that, based on the projection of the licensee's cash flows, the licensee:
(i) will have access when needed to enough financial resources to meet its liabilities over the projected term of at least the next 12 months; and
(ii) will hold at all times during the period to which the projection relates in cash or cash equivalents, an amount equal to or greater than the current amount the licensee is required to hold in cash or cash equivalents under subsection (5); and
(f) make the projections available to ASIC on request.

Net tangible assets
(4) The licensee must have at all times NTA (the required NTA) of at least the greater of:
(a) $1,000,000; or
(b) 10% of average revenue of the licensee.
(5) The licensee must hold at all times:
(a) cash and cash equivalents in an amount that is at least 50% of the required NTA; and
(b) liquid assets in an amount that is at least 50% of the required NTA.
Money that is in an account held by the licensee for the purposes of section 981B or other cash or cash equivalents that are held in respect of any liability or obligation to clients cannot be counted towards either requirement.
           Note: For the avoidance of doubt, any other cash and cash equivalents cannot be counted for both paragraph (a) and (b).
(6) The licensee must lodge with ASIC a statement in writing setting out:
(a) its NTA as at the end of the licensee's financial year; and
(b) details of how this was worked out.
The statement must be lodged no later than when the licensee is required to lodge a balance sheet with ASIC under section 989B for the financial year.

Reporting triggers and requirements for financial requirement conditions
(7) Where the NTA of the licensee decreases (a notifiable event) from an amount greater than 110% of the required NTA to a lower amount, the licensee must, by the following times, lodge a written report with ASIC that specifies the NTA of the licensee as at the date of the report:
(a) within 3 business days after becoming aware of the notifiable event; and
(b) on the first day of every month after becoming aware until, as at the last day of the preceding month, the NTA is greater than 110% of the required NTA.
(8) Where the NTA of the licensee is less than the required NTA for a continuous period of 2 months, the licensee must notify, in writing, the following