Pursuant to section 38 of the Securities Markets Act 1988, the Financial Markets Authority gives the following notice.
N o t i c e
1. Title, commencement and expiry-(1) This notice
is the Authorised Futures Dealers (ICAP New Zealand Limited) Notice 2011.
(2) This notice comes into force on 1 September 2011.
(3) This notice expires on the close of 31 August 2016.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
Act means the Securities Markets Act 1988.
Company means ICAP New Zealand 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 a 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-(1) Subject to clause 3(2), the Company is authorised to carry on the business of dealing in futures contracts generally.
(2) The authorisation applies only to dealing in futures contracts that consists of advising or assisting a person
in connection with the acquisition or disposal of a futures contract.
(3) The authorisation is subject to the conditions that:
(a) the Company does not hold client money or client property in connection with dealing in futures contracts; and
(b) the Company does not carry on the business of dealing in futures contracts on behalf of any person other than one who has entered into a written contract for services with the Company, and then only in accordance with the terms of that contract; and
(c) the Company deals only on behalf of its wholesale clients; and
(d) before dealing in any futures contract in respect of which the authorisation applies, the Company 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
(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) the Company provides the Financial Markets Authority with a copy of the Company's audited financial statements no later than three months after the end of each financial year for the Company; and
(g) the Company notifies the Financial Markets Authority of any material matter concerning the Company's authorisation as a futures dealer, including any regulatory action taken concerning the Company, whether in New Zealand or overseas.
Dated at Wellington this 22nd day of August 2011.
SEAN HUGHES, Chief Executive, Financial Markets Authority.