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 (PricewaterhouseCoopers) Notice 2013.
(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 2016.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
Act means the Securities Markets Act 1988.
Board means the governing board of the Firm.
Firm means PricewaterhouseCoopers New Zealand.
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.
(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) The Firm 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 Firm does not carry on the business of dealing in futures contracts except as part of the business of the Firm of providing advice or assistance to its clients in connection with the acquisition or disposition of futures contracts; and
(b) the Firm deals only on behalf of its wholesale clients; and
(c) before dealing in any futures contract in respect of which the authorisation applies, the Firm 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 Firm 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 Firm, and then only in accordance with the terms of that contract; and
(e) the Firm, 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 Firm provides the following information to FMA on an annual basis, in writing and no later than one month after the end of each financial year for the Firm:
(i) a certificate confirming the general terms
and conditions of coverage of the Firm's professional indemnity insurance policy and its application to the Firm's futures dealing activities;
(ii) a copy of the Firm's balance sheet as at the end of the most recently completed accounting period which has been signed as true and correct by two partners of the Firm's Board;
(iii) a solvency certificate for the Firm signed by two partners of the Firm's Board; and
(iv) a certificate confirming the number of partners of the Firm; and
(h) the Firm notifies FMA as soon as practicable of any material matter concerning its authorisation as a futures dealer, including the following events:
(i) the insolvency of the Firm or the bankruptcy of any of its partners;
(ii) appointment of a receiver or a similar officer, or where any resolution is passed or order made for the dissolution of the Firm;
(iii) if the Firm or any of its partners is convicted of an offence punishable by two or more years' imprisonment;
(iv) any regulatory action taken against the Firm, or any of its partners, whether in New Zealand
or overseas; and
(v) if any member of the Board of PwC or the partners of the Financial Risk business unit leaves the Firm or if any new appointment is made to the Board of PwC or as a partner within the Financial Risk business unit.
Dated at Wellington this 12th day of November 2013.
ELAINE CAMPBELL, Head of Compliance Monitoring, Financial Markets Authority.