25 OCTOBER NEW ZEALAND GAZETTE 4129

more than 20% of the issued capital of a member firm; or

(d) who has or has had at any time a relationship with a member firm giving that individual full member the right or opportunity to influence or control the direction of that member firm which, in the opinion of the Board, would reasonably require that individual full member to be regarded at the material time as a principal of that member firm.

"Principal stockbroking office" means the stockbroking office of the member firm designated as such in accordance with Rule 8.11.

"Rules" means the New Zealand Stock Exchange Rules 1996, as amended from time to time.

"Securities" has the meaning set out in the Listing Rules, and includes any other derivative financial instrument.

"Stock" or "stocks" includes shares and vice versa.

"Stockbroker" includes sharebroker and vice versa.

"Stockbroking" includes sharebroking and vice versa.

"Stockbroking business" includes:

(a) trading in securities as principal, or for and on behalf of or as agent for, any other person;

(b) the giving of investment advice relating to securities to any other person for remuneration; and

(c) any other business which a member firm conducts relating to securities and which impacts on the financial position of the member firm.

"Stockbroking office" means any place from which a stockbroking business is conducted, including the provision of advice or the acceptance or lodgement of orders for the purchase or sale of securities.

"Suspension" has the meaning set out in Rule 21.6.

1.2 Construction:

(a) The headings are inserted for convenience only and shall not affect the construction of these Rules.

(b) Words importing persons include firms and corporations unless the context otherwise requires.

(c) Words importing one gender include the other genders.

(d) Words importing the singular include the plural, and vice versa.

(e) Reference to any legislation or legislative provision includes any statutory modification or re-enactment of, or legislative provision substituted for, and any statutory instrument issued under, that legislation or legislative provision.

2. Objects

2.1 Functions of the Exchange: As prescribed by section 4(1) of the Act, the functions of the Exchange are:

(a) To operate a national stock exchange, which may be wholly or in part operated through the establishment of regional stock exchanges;

(b) To promote and specify the conditions and terms for the listing and trading of securities on its exchange;

(c) To regulate and promote uniformity in the conduct of its members and of business by its members;

(d) To promote the interests of its members and members of the public in relation to the listing, trading, underwriting, and marketing of securities.

2.2 Powers of the Exchange: As prescribed by section 4(2) of the Act, the Exchange shall have all such powers as are reasonably necessary or expedient to carry out its functions.

3. Membership

3.1 Classes of membership: Membership of the Exchange shall comprise the following classes:

(a) Individual associate member;

(b) Individual full member; and

(c) Member firm.

4. Application for membership

4.1 Application in writing: Application for membership shall be made in writing to the Board.

4.2 Requirements of application: An application for membership shall:

(a) state that the applicant agrees to comply fully with the Rules and at all times will observe good stockbroking practice; and

(b) provide evidence of the applicant’s eligibility under Rules 5 or 6, as the case may be.

5. Requirements for admission of individual members

5.1 The Board shall admit as an individual member of the Exchange a natural person who has applied for membership of the Exchange in accordance with Rule 4 if:

(a) The person supplies evidence satisfactory to the Board to the effect that: In the case of an application to become an individual associate member:

(i) He holds a sharebroker’s licence;

(ii) He has obtained a pass in such examinations as the Board may from time to time prescribe or, within three months of the gazetting of these Rules, has satisfied the Board that he has sufficient experience to warrant acceptance for associate membership;

(iii) He is currently working under the supervision of an individual full member, and has had full time experience for a continuous period of at least three months under the supervision of an individual full member, or has had equivalent securities industry experience; and

(iv) He will at all times fully observe the Rules and will carry out his responsibilities as a member and stockbroker honestly and diligently. Without limiting the power of the Board to satisfy itself with regard to this requirement, it may accept references from at least two suitable persons (other than persons connected with the member firm then employing the applicant) as evidence of the applicant’s intentions in this matter.

In the case of an application to become an individual full member:

(v) He holds a sharebroker’s licence;

(vi) He has been employed full time for a total of not less than three years in the five year period immediately preceding his application for membership in the stockbroking office of a member firm or of a member of an overseas stock exchange recognised by the Exchange, or has had equivalent securities industry experience;

(vii) He has obtained a pass in such further examinations as the Board may from time to time prescribe.

In exceptional circumstances, the Board may consider and accept evidence of experience or qualifications, either in reduction of the three year full time employment requirement or extension of the five year period, or exemption from the examination qualifications required, but not both; and

(viii) He will at all times fully observe the Rules, and will carry out his responsibilities as a member and stockbroker honestly and diligently.