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 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 February 2012.
Clause 2: Interpretation—(1) In this notice, unless the context otherwise requires:
“Act” means the Securities Markets Act 1988.
“AFS Licence” means an Australian Financial Services Licence granted under the Corporations Act.
“ASIC” means the Australian Securities and Investments Commission.
“Corporations Act” means the Corporations Act 2001 of the Commonwealth of Australia.
“JPMAL” means J.P. Morgan Australia 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) JPMAL is authorised to carry on the business of dealing in futures contracts other than futures contracts made on or effected through a recognised exchange.
(2) The authorisation is subject to the conditions that:
(a) JPMAL 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
(b) before dealing in any futures contract in respect of which the authorisation applies, JPMAL 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
(c) the terms of every futures contract in respect of which the authorisation 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 (a) and (b); and
(d) JPMAL does not hold client money or client property in connection with dealing in futures contracts; and
(e) JPMAL is licensed as an Australian Financial Services Licensee under the Corporations Act and holds an AFS Licence which authorises JPMAL
to provide futures dealing and advisory services to wholesale clients; and
(f) JPMAL notifies the Commission if JPMAL’s AFS Licence is varied or revoked and notifies the Commission of any regulatory action taken by ASIC in relation to JPMAL’s AFS Licence; and
(g) JPMAL provides the Commission with a copy
of JPMAL’s annual financial statements no later than 3 months after the end of each financial year
for JPMAL; and
(h) JPMAL notifies the Commission of any material matter concerning JPMAL’s authorisation as a futures dealer.
Dated at Wellington this 1st day of February 2007.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
JANE DIPLOCK, Chairperson.