Is it open to the Bank to decide what proportion of an authorised member's assets must be kept in liquid form? It does not state the required proportion in the Bill.
SECTION 26.
Question proposed: "That section 26 stand part of the Bill".
It has been decided to leave the amount open because different member firms require different levels of liquidity. There is an EU directive that sets out the way these ratios are calculated.
Is there a formula for doing this or is it just at the whim of somebody?
There are definite and specified graduated levels.
Question put and agreed to.