The following is a short overview of the process, a full overview document can be found here.

At the discretion of the LPMCL Board, a copy of the LPMCL Rules, which set out the criteria for membership, will be shared with the applicant. The applicant will be required to pay a non-refundable Application Fee.

LPMCL will then undertake preliminary due diligence on the applicant, which includes confirmation of its compliance with the membership criteria set out in the LPMCL Rules, including its status as a Market Maker with LBMA and LPPM. If LPMCL is satisfied with its findings, the applicant will be required to present to the Board on its eligibility.

The Board may then upon its discretion confirm to the applicant that it is prepared in principle to admit the applicant as a User Member, inviting the applicant to enter into the User Terms of Membership Agreement and agree to be bound by the LPMCL Rules (and its criteria for operation).

The Disclosable Schedule from the LPMCL Rules set out the criteria required to become a Member of LPMCL. To qualify for approval, the applicant must be a Market Making Member of LBMA or a Full Market Making Member of LPPM, must operate a vault or have access to vaulting services and fulfil the criteria documented in the Rules.

The LPMCL Rules constitute a contract which is binding upon every Member, and between Members, and between LPMCL and Members at all times.

The LPMCL Rules prescribe the ongoing compliance obligations of all Members and also contain provisions governing exchange accounts and the process of allocation.

Prior to LPMCL undertaking due diligence upon receipt of a membership enquiry, the applicant is required to pay a non-refundable Application Fee of £10,000 (or such other amount as determined by the Board) to reflect the work undertaken throughout the application process.

This will primarily involve the testing of internal procedures and technical capabilities. Should this testing stage be successful, the application fee will also cover costs involved with incorporating the applicant into existing technical frameworks and legal agreements.

Upon confirmation of the applicant’s admission as a Member, LPMCL and the applicant will enter into a Terms of Membership which will set out the terms and conditions for the applicant’s admission as a User Member.

The User Terms of Membership Agreement also governs the financial obligations of the User Member. All contributions by way of an Annual Fee shall then be applied toward ordinary costs and expenses of LPMCL.

An Equity Member (see full Membership Application Process paragraph 9) will enter into an equity terms of membership agreement (the Equity Terms of Membership Agreement), the terms of which will include requiring the new Equity Member to be bound by the Articles of Association. All contributions by way of an Operating Costs Contribution shall then be applied toward ordinary costs and expenses of LPMCL. Additionally, the liability for investment and capital costs sits with the Equity Members.

The accounts agreements govern the accounts relationship between Members and their clients and will be dated from when the account is opened. The applicant must incorporate these agreements into their business.

Alongside the contractual documentation listed above, all Members should demonstrate their ability to comply with LPMCL’s internal policies on the following physical considerations:

• Vaulting: Rule 2.2.9 of the LPMCL Rules requires that a Member to operate a vault of its own or have access to vaulting services provided by other parties under contract to it to facilitate, in either case, the physical delivery of Precious Metal in loco London in accordance with LBMA or LPPM rules in force from time to time (as appropriate to the relevant Precious Metal) and otherwise of a standard which is sufficiently robust given the activities of LPMCL. Members agree which vaults are acceptable for allocations for each precious metal on a bilateral basis.
• Good Delivery gatekeeper capability: Members must ensure relevant staff have undertaken the LBMA Vault Operators’ Training.
• LBMA approved weigher: Members must engage only with approved weighers listed in the relevant Annex of the LBMA Good Delivery Rules.

Full information on the criteria can be found in the Disclosable Schedule from the LPMCL Rules.

Each applicant is required to pay the Application Fee to LPMCL.

From the date of admission: (i) each User Member shall pay an Annual Fee to LPMCL; and (ii) each Equity Member shall pay the Operating Costs Contribution. For the avoidance of doubt, an Equity Member is not required to pay the User Member Annual Fee.

Further information about applying to become an Equity Member can be requested via email to mail@lpmcl.com or to LPMCL@LBMA.org.uk

• Annual Fee: means the fee payable by a User Member on an annual basis as determined by the Board
• Application Fee: means the non-refundable fee payable by an applicant to the LPMCL in order for the Board to process and review the application, as determined by the Board from time to time.
• Articles of Association: means the articles of association of LPMCL as amended from time to time.
• Board: means the board of directors of LPMCL. Please refer to Annex A for the Board’s Terms of Reference.
• Clearer: means a bank involved in the clearing (or settlement) of transfer instructions and account management for Precious Metals and the resultant squaring or covering of positions with other banks, as set out in the LPMCL Rules.
• Company or LPMCL: means London Precious Metals Clearing Limited, a company limited by shares registered in England and Wales with company number 10961672 with registered office at 1-2 Royal Exchange Buildings, Royal Exchange, London, United Kingdom, EC3V 3LF.
• Equity Member: means a Clearer which LPMCL determines satisfies the criteria for user membership as set in the LPMCL Rules and which is also a shareholder of the Company.
• LBMA: means the London Bullion Market Association.
• LPMCL Rules: means the rules of LPMCL as issued and amended from time to time by the Board.
• LPPM: means the London Platinum and Palladium Market.
• Member: means a User Member or an Equity Member and "membership" shall be construed accordingly.
• Operating Costs Contribution: means the quarterly amount payable by each Equity Member determined by the Board and calculated pro rata to each Equity Member's shareholding, to reflect the operating costs and expenses of the Company not otherwise recovered through the payment of Annual Fees.
• Precious Metals: means gold, silver, platinum and/or palladium.
• User Member: means a Clearer which LPMCL determines satisfies the criteria for user membership as set out in the LPMCL Rules and which is not a shareholder of the Company.