Guidance: Purpose and application of AMI

The rules and guidance in AMI complement Chapter 2 of Part 3 of the Framework Regulations (Licensing of Authorised Market Institutions) and Part 6 of the Framework Regulations (Capital Markets), where relevant. AMI also contains rules in relation to the supervision of Authorised Market Institutions which complement the provisions in Part 8 of the Framework Regulations (Supervision of Authorised Persons) and Chapter 7 of the GEN rulebook (Supervision). The purpose of the rules and guidance in AMI is to set out:

·the licensing requirements, or standards, which an applicant must satisfy to be granted a Licence to carry on either of the Market Activities of Operating an Investment Exchange and Operating a Clearing House and at all times thereafter. Reference in these Rules and guidance to an "Authorised Market Institution" or any type of an Authorised Market Institution should be taken to refer also to an applicant where relevant;

·the various regulatory functions that an Authorised Market Institution must perform in relation to admitting Securities, Units in a Listed Fund or Derivatives to trading, operating an Official List and enforcing its Business Rules; and

·the supervisory regime to which such an Authorised Market Institution will be subject on an ongoing basis, including requirements in respect of its relationship with the AFSA.

The application of the rules in AMI is as follows:

·Chapter 1 contains introductory provisions applicable to all Authorised Market Institutions.

·Chapter 2 contains rules and guidance applicable to all Authorised Market Institutions.

 Chapter 2-1 contains rules and guidance applicable to Authorised Market Institutions Operating a facility for Investment Tokens.

·Chapter 3 contains additional rules and guidance applicable to Authorised Investment Exchanges.

·Chapter 4 contains additional rules and guidance applicable to Authorised Clearing Houses (including Authorised Central Counterparties).

·Chapter 5 contains rules in relation to the supervision of Authorised Market Institutions.

  [intentionally omitted]

·Chapter 7 contains additional rules and guidance applicable to Authorised Crowdfunding Platforms.

For the avoidance of doubt, an Investment Token should be treated in the same way as the Investment it represents.