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Notice Type
Authorities/Other Agencies of State
Notice Title

Authorised Futures Dealers (Union Standard International Group Pty Limited) Notice 2014

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 (Union Standard International Group Pty Limited) Notice 2014.

(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

adviser means a director, employee or agent of the company who provides, or may provide, futures adviser services to a client

AFS Licence means an Australian financial services licence granted under the Corporations Act 2001

ASIC means the Australian Securities and Investments Commission

company means Union Standard International Group Pty Limited

Corporations Act 2001 means the Corporations Act 2001 of the Commonwealth of Australia

FMA means the Financial Markets Authority

futures adviser service means a service provided by or on behalf of the company in relation to a specified futures contract that would, but for section 14(1)(n) of the Financial Advisers Act 2008, constitute financial advice or a discretionary investment management service under that Act

personalised futures adviser service means a futures adviser service that would, but for section 14(1)(n) of the Financial Advisers Act 2008, constitute a personalised service under that Act

product disclosure statement means a document:

    1. that describes and contains the offer of, and relates specifically to, the specified futures contracts;
    2. that is identical to a document that is:
      1. a product disclosure statement in terms of the Corporations Act 2001; and
      2. signed by the persons (if any) who are required by law to sign that document; and
    3. that is not an “offer information statement” or “profile statement” (as those terms are defined in section 9 of the Corporations Act 2001)

Regulations means the Futures Industry (Client Funds) Regulations 1990

specified futures contract means a futures contract that is issued by the company and described in the product disclosure statement.

(2) Any term or expression that is defined in the Act or the Regulations and used, but not defined, in this notice has the same meaning as in the Act or the Regulations.

3 Authorisation—(1) The company is authorised to carry on the business of dealing in specified futures contracts to which the company is, or intends to be, a party.

(2) The authorisation in this clause 3 is subject to the conditions that:

    1. the company does not enter into specified futures contracts with any person other than a person who has entered into a written agreement with the company, and then only in accordance with the terms of that agreement;
    2. the company is licensed as an Australian Financial Services Licensee under the Corporations Act 2001 and holds an AFS Licence that authorises the company to advise retail and wholesale clients on, and to deal with retail and wholesale clients in, specified futures contracts;
    3. the company notifies the FMA if the company’s AFS Licence is varied or revoked and notifies the FMA of any regulatory action taken by ASIC in relation to its AFS Licence;
    4. there is a product disclosure statement relating to the specified futures contracts at the time that the specified futures contracts are made available to New Zealand investors or the company gives advice or assistance to, or induces or attempts to induce, New Zealand investors in relation to the acquisition or disposal of any specified futures contracts;
    5. before the company enters into a specified futures contract with any person, that person has received copies of the following:
      1. a product disclosure statement relating to that specified futures contract; and
      2. every supplementary product disclosure statement relating to that specified futures contract in use at the time of the entry by the company into the specified futures contract;
    6. the company must hold client funds in a segregated client funds account as if the funds were subject to the provisions of its AFS Licence, the Corporations Act 2001 and any regulations made under the Corporations Act 2001 in relation to the protection of client money and client property;
    7. the company maintains proper records:
      1. to record dealings in respect of specified futures contracts with clients;
      2. to record client money, funds and property held or received in connection with dealings in specified futures contracts; and
      3. that are audited or reviewed, and reported on, in accordance with the company’s AFS Licence;
    8. the company provides the FMA with a copy of the company’s audited financial statements no later than three months after the end of each of its financial years;
    9. before the company provides any personalised futures adviser service to any retail client in relation to a specified futures contract, the company has provided that person with an adviser disclosure statement which clearly sets out the following information:
      1. the name and contact details of the company;
      2. a statement to the effect that that advice on futures contracts is regulated under the company’s authorisation as a futures dealer and is not regulated under the Financial Advisers Act 2008;
      3. the types of products the company deals in and, if advice on any product is only provided by some advisers, which advisers can provide advice on each product;
      4. a description of how the company and its advisers are remunerated for futures dealing services;
      5. a description of any other factors which may materially influence the advice given by the company or its advisers;
      6. details of any bankruptcy or insolvency event occurring in the past five years in respect of the company or one of its advisers;
      7. details of any disciplinary or criminal proceedings resulting in an adverse finding in the past five years in respect of the company or one of its advisers;
      8. details of any conviction for an offence of dishonesty against any of the company’s advisers;
      9. a description of the internal and external dispute resolution schemes available to the client, and an explanation of how to make a complaint; and
      10. a description of the FMA’s role in authorising futures dealers, and details of how to contact the FMA;
    10. the company takes reasonable steps to ensure at all times that each adviser who provides futures adviser services to a client:
      1. exercises the care, diligence and skill that a reasonable adviser would exercise in the same circumstances;
      2. has the competence, knowledge and skills to provide futures adviser services to that client, and in respect of the relevant specified futures contract;
      3. places the interests of the client first, and acts with integrity, in providing the futures adviser services;
      4. ensures that the client has sufficient information, in a form which enables the client to understand that information, to make an informed decision about the futures adviser service and the specified futures contracts to which that futures adviser service relates;
      5. ensures that the client understands whether or not any advice given takes into account the personal circumstances of the client; and
      6. does not act in any way, or make any omission, which would bring the financial services profession, or any part of it, into disrepute;
    11. the company maintains professional indemnity insurance for its business at all times to the level required by its AFS Licence;
    12. the company maintains at all times an external dispute resolution scheme that is available to its New Zealand clients who are members of the public;
    13. any company document that states the company has been authorised by the FMA to carry on the business of dealing in futures contracts includes a statement to the effect that:
      1. the FMA’s role in authorising futures dealers is limited and does not imply approval or endorsement of the business, trading or solvency of the company; and
      2. the FMA has not approved any agreements or any disclosure documents of the company;
    14. the company immediately notifies the FMA in writing of any of the following events:
      1. the insolvency of the company or the bankruptcy of any of its directors or senior management;
      2. if the company, or any of its directors or senior management, is convicted of an indictable offence;
      3. where a receiver, provisional liquidator, liquidator or a similar officer is appointed, or any resolution is passed or order made for the winding up or dissolution of the company;
      4. any regulatory action taken against it, or any of the company’s directors or senior management, whether in New Zealand or elsewhere;
      5. if any director or senior manager leaves the company or if any new director or member of senior management is appointed to the company; and
      6. if any auditor’s report prepared in accordance with the company’s AFS Licence shows any non-compliance with that AFS Licence or the Corporations Act 2001; and
    15. the product disclosure statement for the specified futures contracts to be entered into by the company is accompanied by statements or information to the following effect under the heading “Important Information for New Zealand Investors”:
      1. the name and address of the company (unless the information is provided in the product disclosure statement);
      2. that the company may not be subject in all respects to New Zealand law;
      3. information describing how returns to New Zealand investors are likely to be affected by New Zealand taxation rules and how, as a result, any returns to New Zealand investors may differ from the returns for Australian investors described in the product disclosure statement;
      4. that, despite the information provided under paragraph iii., investors should satisfy themselves as to the tax implications of entering into the specified futures contracts;
      5. that entry into the specified futures contracts may carry with it a currency exchange risk;
      6. that the financial reporting requirements applying in New Zealand and those applying in respect of the company may be different, and the financial statements of the company may not be compatible in all respects with financial statements prepared in accordance with New Zealand law;
      7. information or statements to the following effect under the heading “Agreement as to Jurisdiction”:
        1. that, in respect of a dispute concerning the specified futures contracts, the company:
          1. agrees to submit to the non-exclusive jurisdiction of the New Zealand courts;
          2. has instructed the New Zealand agent for service referred to in subparagraph C. to accept service on the company’s behalf;
          3. agrees that this statement is an agreement with each investor for the purposes of section 389(1)(e) of the Companies Act 1993; and
        2. that, despite the statements referred to in subparagraph A., the specified futures contracts may not always be enforceable in New Zealand courts; and
        3. the name and contact address of the person in New Zealand who has been appointed by the company to accept service in New Zealand of any document on its behalf; and
    16. at the same time as the specified futures contracts are made available by the company to New Zealand investors in reliance on the authorisation in this notice, those specified futures contracts are also made available to Australian investors in accordance with the laws of Australia.

Dated at Wellington this 19th day of November 2014.

ELAINE CAMPBELL, Director of Compliance.