Pursuant to section 38 of the Securities Amendment Act 1988, the Securities Commission gives the following notice.
N o t i c e
1. Title, commencement and expiry-(1) This notice is the Authorised Futures Dealers Notice (No. 3) 2002.
(2) This notice comes into force on the day after the date of its publication in the New Zealand Gazette.
(3) This notice expires on the close of 31 September 2007.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
"Act" means the Securities Amendment Act 1988.
"Exchange" means the New Zealand Futures and Options Exchange Limited.
"Macquarie Bank" means Macquarie Bank Limited.
(2) Any term or expression that is defined in the Act and used, but not defined, in the notice has the same meaning
as in the Act.
3. Authorisation-(1) Macquarie Bank is authorised to carry on the business of dealing in futures contracts other than futures contracts made on or effected through the Exchange or a futures exchange in a country other than
New Zealand which is authorised by the laws of that country to operate as a futures exchange.
(2) The authorisation in the notice applies only to dealing in futures contracts that consist of advising or assisting a person in connection with the acquisition or disposition of a futures contract described in subclause (1).
(3) The authorisation in this notice is subject to the conditions that:
(a) every person that Macquarie Bank advises or assists in connection with the acquisition or disposition of
a futures contract to which the notice applies is a counterpart or potential counterpart to a futures contract in respect of which Macquarie Bank is or intends to be a party; and
(b) Macquarie Bank is satisfied, on reasonable grounds, that the counterparty to each futures contract to which this notice applies, and any person to whom Macquarie Bank gives advice or assistance in relation to the acquisition or disposition of any futures contract to which this notice applies, is:
(i) a person who owns tangible assets with a market value of more than $10 million; or
(ii) a trustee of a trust or a funds manager, acting in that capacity, which has under that person's control, as trustee or funds manager, assets with an aggregate value exceeding $50 million; or
(iii) a person who is a licensed dealer of the
New Zealand Futures and Options Exchange Limited who is authorised to carry on the business of dealing in futures contracts under the Act; or
(iv) a person authorised in another jurisdiction by the competent authority of that jurisdiction to deal in futures contracts; or
(v) Her Majesty the Queen in right of New Zealand, a Crown entity named in the Fourth Schedule
to the Public Finance Act 1989, or a State Enterprise named in the First or Second Schedule to the State Owned Enterprises Act 1989 (each as amended from time to time); or
(vi) a person which is a statutory corporation; or
(vii) a person which is a related body corporate, in terms of section 2 (3) of the Companies Act 1993 (but without the requirement of being a company under that Act), of any of the persons mentioned in subparagraphs (i) to (vi) above; and
(c) before acquiring or disposing of any futures contract to which this notice applies, Macquarie Bank is satisfied on reasonable grounds that the counterparty is contracting:
(i) as principal on its own account; or
(ii) on behalf of a related body corporate, as mentioned in paragraph (b) (vii); or
(iii) as trustee of a trust or manager of a managed fund; and
(d) the terms of every futures contract in respect of which the authorisation in this notice applies:
(i) create obligations that cannot be transferred
or terminated by either party to the futures contract without the consent of the other party; and
(ii) require that any transfer of obligations under the futures contract can be made only to a person who meets the criteria described in paragraphs (b) and (c).
Dated at Wellington this 1st day of October 2002.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
JANE DIPLOCK, Chairman.