Pursuant to section 38 of the Securities Markets Act 1988, the Securities Commission (“Commission”) gives the following notice.
N o t i c e
Clause 1: Title, Commencement and Expiry—(1) This notice is the Authorised Futures Dealers Notice (No. 3) 2006.
(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 August 2011.
Clause 2: Interpretation—(1) In this notice, unless the context otherwise requires:
“Act” means the Securities Markets Act 1988.
“company” means ICAP New Zealand Limited.
“recognised exchange” means an authorised futures exchange or any exchange in a country other than
New Zealand which is authorised by the laws of that country to operate as a futures exchange.
(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.
Clause 3: Authorisation—(1) The company is authorised to carry on the business of dealing in futures contracts generally.
(2) The authorisation applies only to dealing in futures contracts that consists of advising or assisting a person
in connection with the acquisition or disposal of a futures contract.
(3) The authorisation is subject to the conditions that:
(a) the company does not hold client money or client property in connection with dealing in futures contracts; and
(b) the company does not carry on the business of dealing in futures contracts on behalf of any person other than one who has entered into a written contract for services with the company, and then only in accordance with the terms of that contract; and
(c) the company deals only on behalf of its wholesale clients, being any client that is:
(i) a person who controls at least $10 million; or
(ii) a trustee of a trust or a funds manager, acting in that capacity, who has under that person’s control, as trustee or funds manager, net assets of at least $10 million; or
(iii) a person 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 Crown Entities Act 2004, or a State enterprise named in the First or Second Schedule to the State-Owned Enterprises
Act 1986 (each as amended from time to time); or
(vi) a person who is a statutory corporation or a registered bank; or
(vii) a person whose principal business is the investment of money or who, in the course
of and for the purposes of their business, habitually invests money; or
(viii) a person who is a related body corporate
of any of the persons mentioned in subparagraphs (i) to (vii) above; and
(d) before dealing in any futures contract in respect of which the authorisation applies, the company is satisfied on reasonable grounds that the wholesale client is contracting:
(i) as principal on its own account; or
(ii) on behalf of a related body corporate; or
(iii) as trustee of a trust or manager of a managed fund; and
(e) the company provides the Commission with a copy of the company’s audited financial statements no later than three months after the end of each financial year for the company; and
(f) the company notifies the Commission of any material matter concerning the company’s authorisation as a futures dealer, including any regulatory action taken concerning the company, whether in New Zealand or overseas.
Clause 4: Further condition relating to on-exchange dealing in futures contracts—The authorisation is
also subject to the condition, in respect of any futures
contract that is made on or effected through a recognised exchange, that any acquisition or disposal of the contract is effected through a person who is an authorised participant or member of the recognised exchange and who is authorised or licensed by the laws of the country in which it operates to deal in futures contracts on behalf of that person and to hold client money for that purpose.
Clause 5: Further condition relating to non-exchange traded futures contracts—The authorisation is also subject to the condition, in respect of any futures contract that is not made on or effected through a recognised exchange, that the terms of such a futures contract:
(a) create obligations that cannot be transferred or terminated by either party to the futures contract without the consent of the other party; and
(b) require that any transfer of obligations under the futures contract can be made only to a person who meets the criteria described in subclauses 3 (3) (c) and (d).
Dated at Wellington this 10th day of August 2006.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
JANE DIPLOCK, Chairperson.