1916

NEW ZEALAND GAZETTE, No. 69

Securities Commission
Securities Markets Act 1988
The Authorised Futures Dealers Notice 2008
Pursuant to section 38 of the Securities Markets Act 1988,
the Securities Commission gives the following notice.

Notice

Clause 1: Title, commencement and expiry—(1) This
notice is the Authorised Futures Dealers Notice 2008.
(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 March 2013.

Clause 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 2001.

“ASIC” means the Australian Securities and Investments
Commission.

“Commission” means the Securities Commission.

“company” means HiFX Limited.

“Corporations Act 2001” means the Corporations Act
2001 of the Commonwealth of Australia.

“product disclosure statement” means a document:
(a) that describes and contains the offer of, and relates
specifically to, the specified futures contracts;
(b) that is identical to a document that is:
(i) a product disclosure statement in terms of the
Corporations Act 2001; and
(ii) signed by the persons (if any) who are
required by law to sign that document;
(c) by means of which it is lawful under the laws of
Australia to make an offer of the specified futures
contracts to the public in Australia; and
(d) 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 a forward foreign exchange 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.

Clause 3: Retail and Wholesale Client 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:
(a) 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;
(b) the company is licensed as an Australian Financial
Services Licensee under the Corporations Act 2001
and holds an AFS Licence which authorises the
company to advise retail and wholesale clients on,

3 APRIL 2008

and deal with or on behalf of retail and wholesale
clients in, specified futures contracts;
(c) 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 contract;
(d) before the company enters into a specified futures
contract with any person, that person has received
copies of the following:
(i) A product disclosure statement relating to that
specified futures contract; and
(ii) 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;
(e) 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;
(f) the company maintains proper records:
(i) to record dealings in respect of specified
futures contracts with clients;
(ii) to record client money, funds and property
held or received in connection with dealings
in specified futures contracts; and
(iii) which are audited or reviewed, and reported
on, in accordance with the company’s AFS
Licence;
(g) the company maintains adequate professional
indemnity insurance for its business at all times;
(h) 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; and
(i) 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.

Clause 4: Wholesale Client Advisory Authorisation—
(1) The company is authorised to carry on the business
of dealing in futures contracts that consists of advising
or assisting a person in connection with the acquisition or
disposal of futures contracts that are forward foreign
exchange contracts to which the company is not, and does
not intend to be, a party.
(2) The authorisation in this clause 4 is subject to the
conditions that:
(a) the company does not hold client money or client
property in connection with such dealings in futures
contracts; and
(b) the company does not carry on the business of
dealing in such futures contracts on behalf of 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; and
(c) the company deals in such futures contracts only on
behalf of its wholesale clients, being any client
that is:
(i) a person who controls at least $10 million; or