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Attachment 1

THE TAANZ BONDING SCHEME REQUIREMENTS FOR BONDING

Category	A	B	C	D
Requirements	New members (For 2 years)	Up to $5m T/O	$5 to $10m T/O	Over $10m T/O
Opening Financial Statement/Budget	X
Capital Adequacy Test - $40,000 Minimum	X
Remittance Period
7 day mandatory	X
7 or 14 day option		X	X	X
Bond Amount (% x turnover)
4% mandatory	X
7 day remittance 2.66%, or		X	X	X
14 day remittance 4.00%		X	X	X
Bonding Security
Mandatory	X	X	X	X
Negotiable
Bond Limit
7 day remittance - $500K	X	X	X	X
14 day remittance - $750 K	X	X	X	X
Bonding Reporting Frequency
Annual		X	X
6 monthly	X
3 monthly				X
Annual Bonding Requirements
Financial Statements	X	X	X	X
Independent Verification			X
Maintain Capital Adequacy	X
Financial Criteria - self-assessment			X	X
Directors Statutory Declarations:				X
Solvency	X	X
Turnover/client funds	X	X	X	X
Interim Reporting Requirements
Financial Statements	X			X
Statutory Declaration by Directors	X			X
Costs-New Bonded Location Levy	X
Retail Staff Levy	X	X	X	X
Insurance Contrib.- Minimum	X	X	X	X
Insurance Contrib.- Pro-Rata			X	X