Pursuant to section 38 of the Securities Markets Act 1988, the Securities Commission gives the following notice.
N o t i c e
1. Title, commencement and expiry-(1) This notice is the Authorised Futures Dealers (J.P. Morgan Securities Australia Limited) Notice 2010.
(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 30 November 2015.
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.
JPMCB means JPMorgan Chase Bank, National Association.
JPMSAL means J.P. Morgan Securities 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.
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. Authorisation for JPMSAL-(1) JPMSAL is authorised to carry on the business of dealing in futures contracts generally.
(2) The authorisation in clause 3(1) is subject to the conditions that:
(a) JPMSAL deals only on behalf of its wholesale clients; and
(b) before dealing in any futures contract in respect of which the authorisation applies, JPMSAL 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) in respect of any futures contract to which the authorisation applies that is not a futures contract that is effected on a recognised exchange, JPMCB is a party to the futures contract; and
(d) in respect of any futures contract that is not made on or effected through a recognised exchange, the terms of the futures contract 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) above; and
(e) in respect of any futures contract that is made on or effected through a recognised exchange, 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; and
(f) JPMSAL is licensed as an Australian Financial Services Licensee under the Corporations Act and holds an AFS Licence which authorises JPMSAL to provide futures advisory services to wholesale clients; and
(g) JPMSAL notifies the Commission if JPMSAL’s AFS Licence is varied or revoked and notifies the Commission of any regulatory action taken by ASIC in relation to JPMSAL’s AFS Licence; and
(h) JPMSAL provides the Commission with a copy of JPMSAL’s annual financial statements no later than three months after the end of each financial year for JPMSAL; and
(i) JPMSAL notifies the Commission of any material matter concerning JPMSAL’s authorisation as a futures dealer.
Dated at Wellington this 21st day of December 2010.
The Common Seal of the Securities Commission was affixed in the presence of:
DAVID MAYHEW, Member.