Guidance

1. In accordance with Rule 3.2.2 or Rule 3.2.4, an Authorised Person is required to ensure that there is no significant risk that liabilities cannot be met as they fall due. With specific reference to liquidity, an Authorised Person may meet its obligations in a number of ways, including:
a. by holding sufficient immediately available cash or readily marketable assets;
b. by securing an appropriate matching future profile of cashflows; and
c. by further borrowing.
2. In 1.b., "future profile of cashflows" refers to the pattern of cashflows including, for example, in the terms of source, maturity date, amounts and nature of cashflows.