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 (Commonwealth Securities 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 30 September 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 2001.
“ASX” means ASX Limited.
“company” means Commonwealth Securities Limited.
“Corporations Act 2001” means the Corporations Act 2001 of the Commonwealth of Australia.
“Corporations Regulations” means any regulations made under the Corporations Act 2001.
“Regulations” means the Futures Industry (Client Funds) Regulations 1990.
“SFE” means SFE Corporation Limited.
“specified futures contract” means a futures contract that is a contract made on or effected through on
a market operated by ADX Limited, a company incorporated in Australia.
2(2) Any term or expression that is defined in the Act or the Regulations and used, but not defined, in this notice has the same meaning as in the Act or the Regulations.
Clause 3: Authorisation
3(1) The company is authorised to carry on the business of dealing in specified futures contracts.
3(2) The authorisation in this clause 3 is subject to the conditions that:
(a) the company does not deal in specified futures contracts with any person other than a person
who has entered into a written agreement with
the company, or a written agreement with ASB Securities Limited which expressly provides for
the company to deal on behalf of that person,
and then only in accordance with the terms of
that agreement;
(b) the company holds a current AFS Licence which allows it to advise retail and wholesale clients on, and to deal on behalf of retail and wholesale clients in, derivatives, including futures contracts;
(c) the company is a full participant of the SFE;
(d) the company is a clearing participant of the ASX, and is bound by the operating rules of the ASX;
(e) any company document that states the company has been authorised by the Securities Commission to carry on the business of dealing in futures contracts includes a statement to the effect that:
(i) the Securities Commission’s role in authorising futures dealers is limited and does not imply approval or endorsement of the business, trading or solvency of the company; and
(ii) the Securities Commission has not approved any agreements or any disclosure documents of the company;
(f) the company maintains proper records:
(i) to record dealings in respect of specified futures contracts with clients;
(ii) to record client money or property received, held or otherwise dealt with in connection with dealings in specified futures contracts; and
(iii) which are audited or reviewed, and reported on, in accordance with the Financial Reporting Act 1993;
(g) the company sends a copy of its audited financial statements to the Securities Commission not more than three months after the end of each financial year;
(h) the company maintains adequate professional indemnity insurance for its business at all times;
(i) the company maintains an external disputes resolution scheme that is available to New Zealand retail clients; and
(j) the company immediately notifies the Securities Commission in writing of any material matter concerning the company’s authorisation as a futures dealer, including the following events:
(i) the insolvency of the company or the bankruptcy of any of its directors or senior managers;
(ii) where a receiver, provisional liquidator, liquidator or a similar officer is appointed, or any resolution is passed or order made for
the liquidation or dissolution of the company;
(iii) if the company, or any of its directors or senior managers, is convicted of an indictable offence;
(iv) if any auditor’s report prepared in accordance with the Corporations Act 2001, the Corporations Regulations or the company’s AFS Licence shows any non-compliance with the Corporations Act 2001, the Corporations Regulations or its AFS Licence;
(v) any regulatory action taken against the company, or any of its directors or senior managers whether in New Zealand or elsewhere;
(vi) if its AFS licence is varied or revoked; and
(vii) if any director or senior manager leaves the company or if any new director or senior manager is appointed to the company.
Dated at Wellington this 8th day of September 2009.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
JANE DIPLOCK, Chairperson.