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 (JPMorgan Chase Bank, N.A. and J.P. Morgan Australia Limited) Notice 2013.
(2) This notice comes into force on 1 November 2013.
(3) This notice expires on the close of 30 November 2016.
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.
FMA means the Financial Markets Authority established by Part 2 of the Financial Markets Authority Act 2011.
JPMAL means J.P. Morgan Australia Limited.
JPMCB means JPMorgan Chase Bank, National Association.
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.
specified futures contracts means a futures contract to which JPMCB is or intends to be a party.
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 JPMAL-(1) JPMAL 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) 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
(b) JPMAL deals only on behalf of its wholesale clients; and
(c) before dealing in any futures contract in respect of which the authorisation applies, JPMAL 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) 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) JPMAL does not hold client money or client property in connection with dealing in futures contracts; and
(f) JPMAL is licensed as an Australian Financial Services Licensee under the Corporations Act and holds an AFS Licence which authorises JPMAL to provide futures advisory services to wholesale clients; and
(g) JPMAL notifies FMA if JPMAL's AFS Licence is varied or revoked and notifies FMA of any regulatory action taken by ASIC in relation to JPMAL's AFS Licence; and
(h) JPMAL provides FMA with a copy of JPMAL's audited annual financial statements no later than three months after the end of each financial year for JPMAL; and
(i) JPMAL notifies FMA of any material matter concerning JPMAL's authorisation as a futures dealer.
4. Authorisation for JPMCB-(1) JPMCB is authorised to carry on the business of dealing in specified futures contracts.
(2) The authorisation in clause 4(1) is subject to the conditions that:
(a) JPMCB deals only on behalf of its wholesale clients; and
(b) before dealing in any futures contract in respect of which the authorisation applies, JPMCB 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) JPMCB is licensed as an Australian Financial Services Licensee under the Corporations Act and holds an AFS Licence which authorises JPMCB to provide futures advisory services to wholesale clients; and
(d) all client money and property held by JPMCB in connection with dealing in futures contracts is held in accordance with the client money and property protection provisions of the Corporations Act and the conditions of JPMCB's AFS Licence; and
(e) JPMCB notifies FMA if JPMCB's AFS Licence is varied or revoked and notifies FMA of any regulatory action taken by ASIC in relation to JPMCB's AFS Licence; and
(f) JPMCB provides FMA with a copy of JPMCB's annual financial statements no later than three months after the end of each financial year for JPMCB; and
(g) JPMCB notifies FMA of any material matter concerning JPMCB's authorisation as a futures dealer.
Dated at Wellington this 31st day of October 2013.
ELAINE CAMPBELL, Head of Compliance Monitoring, Financial Markets Authority.