✨ Financial Regulations and Compliance Requirements
26 NOVEMBER 2009 NEW ZEALAND GAZETTE, No. 171 4141
(ii) for rights, the lesser of:
A. 100%; or
B. 10% of the combined value of rights and application monies; and
(iii) for other equity securities (including partly paid shares), 100%;
(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 | 4.0% | 7.0% | 8.5% | 10.0% |
| (Non-Govt) | ||||
| 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 | 4.8% | 9.8% | 10.2% | 12% |
| (Non-Govt) | ||||
| 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.
(9) 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.
(10) In calculating the company’s Gross External Liabilities that calculation excludes:
(a) any client funds held by the company; and
(b) the liabilities of any trust of which the company is a trustee.
Clause 6: Reporting requirements—(1) The company must:
(a) appoint a compliance officer with responsibility for ensuring compliance with this Authorisation Notice;
(b) make available to the compliance reporter any information the compliance reporter requests to satisfy itself that the company has complied with the capital adequacy requirements in clause 5, the Regulations, or the policies and procedures set out in its compliance manual.
(2) In addition to matters referred in clause 3(2)(j), the agreed upon procedures engagement terms must provide for (without limitation):
(a) the compliance reporter to receive the monthly reports referred to in clause 6(3) and semi-annual prospective financial statements referred to in clause 6(7) from the company;
(b) the compliance reporter 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(3) of this notice;
(c) the compliance reporter 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(3) of this notice and that they disclose positive net cash inflows for each month;
(d) The compliance reporter 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 compliance reporter on a monthly basis;
(iii) confirm that the calculations were performed in compliance with clause 5;
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NZ Gazette 2009, No 171
✨ LLM interpretation of page content
🏭
Authorised Futures Dealers Notice Amendment
(continued from previous page)
🏭 Trade, Customs & IndustrySecurities, Futures Dealers, Regulatory Amendment, Capital Adequacy, Reporting Requirements
💰 Capital Adequacy Requirements for Liquid Assets
💰 Finance & RevenueLiquid Assets, Capital Requirements, Debt Securities, Equity Securities, Investment Grade, Government Securities
💰 Gross External Liabilities Calculation Exclusions
💰 Finance & RevenueLiabilities, Client Funds, Trust Liabilities, Financial Position
💰 Reporting Requirements for Compliance
💰 Finance & RevenueCompliance Officer, Monthly Reports, Semi-annual Statements, Financial Compliance