Regulation 7

the merchant bank, at the request of and for the purpose of financing the purchase of an asset by a customer, purchases the asset from the seller in circumstances where the asset is existing at the time of the purchase;

the merchant bank sells the asset to the customer;

the customer is under a legal obligation to the merchant bank to take delivery of the asset;

the amount payable by the customer for the asset (the marked‑up price) is greater than the amount paid by the merchant bank for the asset (the original price), and the difference between the marked‑up price and original price is the profit or return to the merchant bank for providing the financing to the customer;

the merchant bank does not derive any gain or suffer any loss from any movement in the market value of the asset other than as part of the profit or return mentioned in sub‑paragraph (d);

the customer is not required to pay the marked‑up price or any part of the marked‑up price to the merchant bank until after the date of the sale mentioned in sub‑paragraph (b).

intention to commence the business mentioned in paragraph (1); or

commencement of the business within 14 days after the date of its commencement.