Pursuant to section 38 of the Securities Markets Act 1988, the Securities Commission gives the following notice.
N o t i c e
Clause 1: Title, commencement and expiry
1(1) This notice is the Authorised Futures Dealers (Direct FX Limited) Notice 2009.
1(2) This notice comes into force on the day after the date of its publication in the New Zealand Gazette.
1(3) This notice expires on the close of 28 February 2014.
Clause 2: Interpretation
2(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.
“Direct FX” means Direct FX 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(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
3(1) Direct FX is authorised to carry on the business of dealing in futures contracts other than futures contracts made on or effected through a recognised exchange.
3(2) The authorisation is subject to the conditions that:
(a) Direct FX 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, Direct FX 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) Direct FX does not hold client money or client property in connection with dealing in futures contracts; and
(d) Direct FX is licensed as an Australian Financial Services Licensee under the Corporations Act and continues to hold an AFS Licence which authorises Direct FX to provide futures dealing and advisory services (at least in respect of foreign exchange contracts) to wholesale clients; and
(e) Direct FX notifies the Commission if Direct FX’s AFS Licence is varied or revoked and notifies the Commission of any regulatory action taken by ASIC in relation to Direct FX’s AFS Licence; and
(f) Direct FX provides the Commission with a copy of Direct FX’s annual financial statements no later than 3 months after the end of each financial year for Direct FX; and
(g) Direct FX notifies the Commission of any material matter concerning Direct FX’s authorisation as a futures dealer.
Dated at Wellington this 17th day of February 2009.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
N. O. TODD, Member.