✨ Financial Regulations
15 OCTOBER 2009 NEW ZEALAND GAZETTE, No. 152 3691
(c) for Liquid Assets comprising debt securities in New Zealand dollars:
| Security Type | NZ Dollar Domiciled Under 1 yr | NZ Dollar Domiciled 1–3 yrs | NZ Dollar Domiciled 3–5 yrs | NZ Dollar Domiciled 5+ yrs |
|---|---|---|---|---|
| Government Securities | 0.5% | 1.5% | 3.0% | 5.0% |
| Investment Grade (Non-Govt) | 1.5% | 3.5% | 4.5% | 7.0% |
| Rated Non Investment Grade | ||||
| (Non-Govt) | 4.0% | 7.0% | 8.5% | 10.0% |
| Other | 6.0% | 8.0% | 10.0% | 12.5% |
All rated Securities must carry a rating by an agency approved by the Reserve Bank for the purposes of section 80 of the Reserve Bank of New Zealand Act 1989.
(d) for Liquid Assets comprising debt securities in foreign currencies:
| Security Type | Foreign Currencies Under 1 yr | Foreign Currencies 1–3 yrs | Foreign Currencies 3–5 yrs | Foreign Currencies 5+ yrs |
|---|---|---|---|---|
| Government Securities | 0.6% | 1.8% | 3.6% | 6.0% |
| Investment Grade (Non-Govt) | 1.8% | 4.2% | 5.4% | 8.4% |
| Rated Non Investment Grade | ||||
| (Non-Govt) | 4.8% | 9.8% | 10.2% | 12% |
| Other | 7.2% | 9.6% | 12% | 15.5% |
All rated Securities must carry a rating by an agency approved by the Reserve Bank for the purposes of section 80 of the Reserve Bank of New Zealand Act 1989.
(8) The Company’s gross external liabilities include its current, long-term and contingent liabilities, whether or not those contingent liabilities appear on the Company’s statements of financial position.
(9) In calculating the Company’s Gross External Liabilities that calculation excludes:
(a) any client funds held by the Company (for this purpose, advance part payments are not client funds); and
(b) the liabilities of any trust of which the Company is a trustee.
Clause 6: Reporting requirements—(1) The Company must:
(a) appoint an Auditor;
(b) appoint a compliance officer with responsibility for ensuring compliance with this Authorisation Notice; and
(c) make available to the Auditor any information the Auditor requests to satisfy itself that the Company has complied with the capital adequacy requirements in clause 5.
(2) The Company must enter into agreed upon procedures with the Auditor, a copy of which must be filed with the Commission, which provide for (without limitation):
(a) the Auditor to receive the monthly reports referred to in clause 6(3) and semi-annual prospective financial statements referred to in clause 6(8) from the Company;
(b) the Auditor to check each month that:
(i) the monthly report contains all of the information that is required to be in the monthly report pursuant to clause 6(3);
(ii) each of the statements required to be referred to in the certificate pursuant to clause 6(4) have been certified as true by the directors;
(iii) the log prepared under clause 6(5)(c) does not disclose any breach of the capital adequacy requirements in clause 5(2) of this notice;
(c) the Auditor to check the semi-annual prospective financial statements to ensure that they do not disclose that the Company is likely to breach the capital adequacy requirements contained in clause 5(2) of this notice and that they disclose positive net cash inflows for each month;
(d) the Auditor to check a sample of days on a semi-annual basis to:
(i) confirm that the calculations required under clause 6(5)(a) were performed on that day and signed off as reviewed by the compliance officer or the chief executive officer;
(ii) confirm that the results of the calculations agree to the logs provided to the Auditor on a monthly basis;
(iii) confirm that the calculations were performed in compliance with clause 5; and
(iv) perform additional procedures, as set out in the agreed upon procedures, over the accuracy of the data used in the calculations;
(e) the Auditor to report to the Securities Commission within 20 working days of the end of each month if:
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NZ Gazette 2009, No 152
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Capital Adequacy Requirements for Futures Dealers
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💰 Finance & RevenueCapital Adequacy, Liquid Assets, Financial Regulations, Futures Dealers