33. Lending of customer’s specified products

Notwithstanding regulations 26 and 27, the holder of a capital markets services licence may, subject to the other provisions of this regulation, lend or arrange for a custodian to lend its customer’s assets which are specified products.

The holder of a capital markets services licence shall not lend or arrange for a custodian to lend the specified products of a customer, unless it has —

explained the risks involved to the customer; and (b)obtained the customer’s written consent to do so.

Paragraph (2)(a) shall not apply to a holder of a capital markets services licence which lends or arranges for a custodian to lend the specified products of a customer who is an accredited investor, expert investor or institutional investor.

The holder of a capital markets services licence which lends its customer’s specified products shall, before the commencement of such lending, enter into an agreement with that customer setting out the terms and conditions for such lending with the customer whose specified products are to be lent.

The holder of a capital markets services licence which arranges for a custodian to lend specified products of the holder’s customer shall, before the commencement of such lending —

enter into an agreement with the custodian setting out the terms and conditions for the lending; and

disclose these terms and conditions to the customer.

Notwithstanding regulations 26 and 27, the holder of a capital markets services licence may, subject to the other provisions of this regulation, lend or arrange for a custodian to lend its customer’s assets which are specified products.

The holder of a capital markets services licence shall not lend or arrange for a custodian to lend the specified products of a customer, unless it has —

explained the risks involved to the customer; and (b)obtained the customer’s written consent to do so.

Paragraph (2)(a) shall not apply to a holder of a capital markets services licence which lends or arranges for a custodian to lend the specified products of a customer who is an accredited investor, expert investor or institutional investor.

The holder of a capital markets services licence which lends its customer’s specified products shall, before the commencement of such lending, enter into an agreement with that customer setting out the terms and conditions for such lending with the customer whose specified products are to be lent.

The holder of a capital markets services licence which arranges for a custodian to lend specified products of the holder’s customer shall, before the commencement of such lending —

enter into an agreement with the custodian setting out the terms and conditions for the lending; and

disclose these terms and conditions to the customer.