Pursuant to section 38 of the Securities Markets Act
1988, the Securities Commission (“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. 4) 2007.
(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 2012.
2. Interpretation—(1) In this notice, unless the context otherwise requires:
“Act” means the Securities Markets Act 1988.
“designated funds manager” means a person named in the Schedule to this notice.
“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.
“wholesale client” means any client that is:
(a) a person who controls at least $10 million; or
(b) 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
(c) a person who is authorised to carry on the business of dealing in futures contracts under the Act; or
(d) a person authorised in another jurisdiction by the competent authority of that jurisdiction to deal in futures contracts; or
(e) 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
(f) a person who is a statutory corporation or a registered bank; or
(g) 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
(h) a person who is a related body corporate of any
of the persons mentioned in subparagraphs (a) to (g) above.
(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.
3. Designated dealers authorised to carry on the business of dealing in futures contracts—(1) Every designated funds manager is authorised to carry on the business of dealing in futures contracts generally.
(2) The authorisation is subject to the conditions that:
(a) the designated funds manager does not carry
on the business of dealing in futures contracts
except as part of the business of that designated funds manager as a funds manager, or an investment adviser or investment manager for a funds manager or a fund; and
(b) the designated funds manager deals only on behalf
of wholesale clients; and
(c) before dealing in any futures contract in respect
of which the authorisation applies, the designated funds manager 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
(ii) as trustee of a trust or manager of a managed fund; and
(d) the designated funds manager does not carry
on the business of dealing in futures contracts on behalf of any wholesale client other than one who has entered into a written contract for services
with the designated funds manager, and then only in accordance with the terms of that contract; and
(e) the company does not hold client money or client property in connection with dealing in futures contracts; and
(f) the designated funds manager notifies the Commission of any material matter concerning
the designated funds manager’s authorisation as
a futures dealer, including any regulatory action taken concerning the designated funds manager, whether in New Zealand or overseas; and
(g) the designated funds manager provides the Commission with a copy of the designated
funds manager’s audited financial statements no later than three months after the end of each financial year for the designated funds manager.
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 to
which this authorisation applies 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.
Schedule
Designated Funds Managers
Commodity Strategies Limited
MS Capital Management Limited
Pure Capital Limited
36 South Investment Managers Limited
Dated at Wellington this 28th day of August 2007.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
COLIN BEYER, Member.