As a provider, you must always have access to enough cash to meet your financial obligations. This is known as liquidity.
Meeting the Liquidity Standard
You must meet the Liquidity Standard if you're an approved provider holding at least one refundable deposit.
The Liquidity Standard requires you to:
- be able to repay refundable deposits due in the next 12 months
- start, maintain and document a written liquidity management strategy (LMS).
Your LMS must specify:
- the minimum level of liquidity (in whole dollars) you need to be able to repay refundable deposits when they're due
- the factors you considered in choosing this level
- what format you'll maintain this level of liquidity in.
To learn more, download the Liquidity Standard fact sheet (PDF, 673.51 KB)
How to show compliance
You can demonstrate you're complying with the Liquidity Standard by showing us:
- your LMS
- bank statements
- lines of credit balances
- any other supporting information.
