Pursuant to section 38 of the Securities Markets Act 1988, the Financial Markets Authority (FMA) gives the following notice.
N o t i c e
1. Title, commencement and expiry-(1) This notice is the Authorised Futures Dealers (Millennium Capital Management (New Zealand)) Notice 2012.
(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 31 December 2017.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
Act means the Securities Markets Act 1988.
Company means Millennium Capital Management (New Zealand) (registered company number 3785476).
recognised exchange means an authorised futures exchange or any exchange in a country other than
New Zealand that 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.
(3) 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) The Company 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) the Company does not carry on the business of dealing in futures contracts except as part of the business of the Company as a fund manager or an investment adviser or investment manager for a fund manager of a fund; and
(b) the Company deals only on behalf of its wholesale clients; and
(c) 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
(d) the Company 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 the Company, and then only in accordance with the terms of that contract; and
(e) the Company, and any other person acting on its behalf, does not hold or receive client money or client property in connection with its dealing in futures contracts; and
(f) in respect of any futures contract that is made on or effected through a recognised exchange, that 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
(g) the Company notifies FMA as soon as practicable 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; and
(h) the Company provides FMA 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.
Dated at Wellington this 3rd day of July 2012.
SEAN HUGHES, Chief Executive, Financial Markets Authority.