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 (QS Investors, LLC) Notice 2011.
(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 28 April 2016.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
Act means the Securities Markets Act 1988.
CFTC means the Commodity Futures Trading Commission of the United States of America.
Commodity Exchange Act means the Commodity Exchange Act 1936 of the United States of America.
Commodity Trading Advisor means a person who is registered as a Commodity Trading Advisor under the Commodity Exchange Act.
NFA means the National Futures Association, a
self-regulatory organisation established under the Commodity Exchange Act in the United States of America.
QS Investors means QS Investors, LLC.
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 QS Investors-(1) QS Investors 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) QS Investors deals only on behalf of its wholesale clients; and
(b) before dealing in any futures contract in respect of which the authorisation applies, QS Investors 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) QS Investors does not carry on the business of dealing in futures contracts on behalf of any wholesale client other than one who has entered into a written contract for services with QS Investors, and then only in accordance with the terms of that contract; and
(d) 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
(e) QS Investors is registered with the NFA as a Commodity Trading Advisor; and
(f) QS Investors notifies the Commission as soon as practicable if QS Investors’ status as a Commodity Trading Advisor is varied or revoked; and
(g) QS Investors notifies the Commission as soon as practicable of any regulatory action taken by the CFTC or the NFA or any other regulatory agency in relation to QS Investors’ dealings in futures contracts; and
(h) QS Investors provides the Commission with a copy of QS Investors’ annual audited financial statements no later than three months after the end of each financial year for QS Investors; and
(i) QS Investors notifies the Commission as soon
as practicable of any material matter concerning
QS Investors’ authorisation as a futures dealer.
Dated at Wellington this 19th day of April 2011.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
NEVILLE TODD, Member.