Regulation 8

for the purpose of making funds of a customer available to a merchant bank, the customer appoints the merchant bank or another person as an agent, to purchase on behalf of the customer, an asset for an amount of money (the original price), in circumstances where the asset is existing at the time of the purchase;

the merchant bank —

purchases the asset from the customer at a price (the marked‑up price) that is greater than the original price; and

sells the asset or appoints the customer, or another person as an agent of the merchant bank, to sell the asset on behalf of the merchant bank;

both the merchant bank and customer do not derive any gain or suffer any loss from any movement in the market value of the asset other than the difference between the marked‑up price and the original price (which represents the profit or return to the customer for making funds available to the bank);

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

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

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