15 OCTOBER 2009 NEW ZEALAND GAZETTE, No. 152 3689

(e) any Company document that states the Company has been authorised by the Securities Commission to carry on the business of dealing in futures contracts includes a statement to the effect that:

(i) the Securities Commission’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

(ii) the Securities Commission has not approved any agreements or any disclosure documents of the Company;

(f) to the extent the Company holds client money or client property, the Company complies with Regulations 3 to 8, 14 to 17 and 22 to 24 of the Regulations as if the Company were a dealer for the purposes of those Regulations, and must, when a client’s position in respect of a specified futures contract is closed out, promptly pay any money owing to the client under that specified futures contract either directly to the client or into a client bank account;

(g) the Company maintains proper records:

(i) to record dealings in respect of specified futures contracts with clients;

(ii) to record client money or client property (if any) received, held or otherwise dealt with in connection with dealings in specified futures contracts; and

(iii) which, to the extent it holds client money or client property, are audited or reviewed, and reported on, in accordance with the Regulations;

(h) the Company’s financial statements are prepared and registered as if the Company is an issuer in terms of the Financial Reporting Act 1993 and are audited at least once a year by a qualified auditor under the Financial Reporting Act 1993;

(i) the Company sends a copy of its audited financial statements to the Securities Commission not more than three months after the end of each financial year;

(j) the Company at all times meets the capital adequacy requirements set out in clause 5 of this notice;

(k) the Company at all times meets the reporting requirements set out in clause 6 of this notice;

(l) the Company maintains adequate professional indemnity insurance for its business at all times; and

(m) the Company immediately notifies the Securities Commission in writing of any material matter concerning the Company’s authorisation as a futures dealer, including the following events:

(i) the insolvency of the Company or the bankruptcy of any of its directors;

(ii) where the Company has failed to comply, or believes it will fail to comply, with the capital adequacy requirements set out in clause 5;

(iii) where a receiver, provisional liquidator, liquidator, administrator or a similar officer is appointed, or any resolution is passed or order made for the liquidation or dissolution of the Company;

(iv) if the Company, or any of its directors, is convicted of an indictable offence;

(v) any regulatory action taken against the Company, or any of its directors or senior management whether in New Zealand or elsewhere; and

(vi) if any director or member of the senior management leaves the Company or if any new director or member of senior management is appointed to the Company.

Clause 4: Further conditions relating to disclosure documents—(1) The disclosure document must include information that would enable a prudent but non-expert investor to make a decision about whether to invest in a specified futures contract of that class.

(2) The disclosure document must include at the front of the disclosure document a statement describing a client’s right under the Act to receive investment adviser disclosure from any person who gives the client investment advice in relation to the specified futures contract.

(3) The disclosure document must remain up to date and continue to comply with clause 4 at all times, and may be amended by the Company at any time for this purpose.

(4) The disclosure document must state, in a prominent place, the date as at which the disclosure document was prepared, and the date of every amendment that has been made to that disclosure document.

(5) The disclosure document must contain all of the following information that is applicable to the class or classes of specified futures contracts to which the disclosure document relates, and must continue to contain all of the following information at the time the specified futures contract is entered into:

(a) A description of the key terms and features of that class or those classes of specified futures contracts;

(b) the name and contact details of the Company;

(c) a description of the amounts payable, or the method of calculating the amounts payable, by a person to the Company in respect of that class or those classes of specified futures contracts, including the consequences of failing to make any payments;

(d) a description of the amounts, or the method of calculating the amounts, of any advance part payments, including initial and ongoing advance part payments, payable by a person to the Company in respect of that class or those classes of specified futures contract, including the consequences of failing to pay any advance part payment;

(e) a description of the treatment of advance part payments, including initial and ongoing advance part payments, payable by a person to the Company in respect of that class or those classes of specified futures contracts;

(f) a description of the types of fees or charges payable by a person, directly or indirectly, to the Company in respect of that class or those classes of specified futures contracts;

(g) a description of the rights of the Company or any other person to alter any of the fees or charges applicable to that class or those classes of specified futures contracts;

(h) a description of the nature of any amounts or returns that may be payable, or the method of calculating any amounts or returns that may be payable, by the Company to a person in respect of that class or those classes of specified futures contracts;