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 (Savings & Investments 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 31 October 2014.
Clause 2: Interpretation
2(1) In this notice, unless the context otherwise requires:
"Act" means the Securities Markets Act 1988.
"Company" means Savings & Investments Limited.
"specified futures contract" means a foreign exchange futures contract that is a unit in a Unit Trust of which the Company is the manager, or that forms part of the rights and obligations of unit holders in the Unit Trust.
"Unit Trust" means a unit trust, established under
the Unit Trusts Act 1960:
(a) of which the Company is the manager; and
(b) which invests only in cash settled forward foreign exchange contracts in respect of one or more underlying currencies; and
(c) in which a unit, or the rights and obligations linked to a unit, give the unit holder a right to receive an amount of money or an obligation
to pay an amount of money depending on the movement of an underlying currency, as measured by reference to a specified equity index.
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) The Company is authorised to carry on the business of dealing in specified futures contracts.
3(2) The authorisation in clause 3(1) is subject to the conditions that:
(a) the offer of specified futures contracts is made in a registered prospectus and investment statement which comply with the Securities Act 1978 and regulations made under the Securities Act 1978; and
(b) the offer of specified futures contracts is only available to clients of financial intermediaries approved by the Company; and
(c) the offer of specified futures contracts requires
the Company from time to time to arrange, with
a registered bank, forward foreign exchange contracts equal to the outstanding subscriptions for each class of specified futures contracts to mature on 31 March each year; and
(d) every person who acquires a specified futures contract has received a copy of the investment statement relating to the offer of specified futures contracts before subscribing; and
(e) the Company does not hold unit holder money or property in connection with dealing in specified futures contracts; and
(f) any Company document that states that 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 or the Unit Trust; and
(ii) the Securities Commission has not approved any agreements or disclosure documents of the Company or the Unit Trust; and
(g) the Company maintains proper records in respect of itself and the Unit Trust:
(i) to record dealings with unit holders in respect of specified futures contracts;
(ii) to record unit holder money or property held or received 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; and
(h) the Company sends a copy of the Unit Trust's audited financial statements to the Securities Commission not more than three months after the end of each financial year; and
(i) the Company maintains adequate professional indemnity insurance for its business at all times; and
(j) the Company immediately notifies the Securities Commission in writing of any material matter concerning its authorisation as a futures dealer, including but not limited to:
(i) the insolvency of the Company or the bankruptcy of any of its directors or senior management;
(ii) if the Company, or any of its directors or senior management, is convicted of an indictable offence;
(iii) where a receiver, provisional liquidator, liquidator or similar officer is appointed to the Company, or any resolution is passed or order made for the winding up or dissolution of the Company;
(iv) any regulatory action taken against the Company or any of its directors or senior management, whether in New Zealand or elsewhere;
(v) if any director or member of the senior management leaves the Company or if any new director or member of senior management is appointed to the Company.
Dated at Wellington this 30th day of October 2009.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
JANE DIPLOCK, Chairperson.