NEW ZEALAND GAZETTE, No. 94

25 JUNE 2009

Securities Commission

Securities Markets Act 1988

The Authorised Futures Dealers (KVB FX Limited) Notice 2009

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 (KVB FX Limited) Notice 2009.

(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 30 June 2011.

Clause 2: Interpretation—(1) In this notice, unless the context otherwise requires:

“Act” means the Securities Markets Act 1988.

“advertisement” has the meaning given to it in section 2A of the Securities Act 1978, except that every reference to securities should be read as a reference to specified futures contracts, and every reference to the issuer should be read as a reference to the Company.

“approved counterparty” means a registered bank, an overseas bank or a company which is an authorised deposit-taking institution under the Banking Act 1959 (Commonwealth of Australia).

“Auditor” means the qualified auditor who has been appointed by the Company and entered into agreed upon procedures with the Company in accordance with clause 6(1) and (2) of this notice.

“Company” means KVB FX Limited.

“disclosure document” means a written document that describes and contains the offer of, and relates specifically to, a particular class, or particular classes, of the specified futures contracts.

“Prescribed Liquid Funds Amount” is the amount specified in clause 5(3).

“qualified auditor” has the same meaning as in section 2C of the Securities Act 1978.

“Regulations” means the Futures Industry (Client Funds) Regulations 1990.

“specified futures contract” means a futures contract that is an option in respect of foreign currency or other forward foreign exchange contract that is issued by the Company and described in the disclosure document.

“Surplus Liquid Funds” has the meaning set out in clause 5(4).

(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: Authorisation—(1) The Company is authorised to carry on the business of dealing in specified futures contracts.

(2) The authorisation only applies to specified futures contracts to which the Company is, or intends to be, a party.

(3) The authorisation 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) before the Company enters into a specified futures contract with any person, that person has received a disclosure document that complies with the requirements of clause 4 of this notice;

(c) every advertisement for a specified futures contract must refer to a disclosure document that relates to the specified futures contracts referred to in the advertisement;

(d) no advertisement shall contain any information, sound, image or other matter that is inconsistent with any disclosure document referred to in the advertisement;

(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) 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 into a client bank account;

(g) the amount of a client’s margin which is withdrawn from the client bank account in relation to a particular specified futures contract does not exceed the lesser of:

(i) the amount described in the disclosure document relating to that specified futures contract in accordance with clause 4(5)(d) of this notice; and

(ii) the amount of margin payable by the Company to an approved counterparty in respect of a contract entered into by the Company to back off its exposure under the specified futures contract in respect of which the client has paid that margin;

(h) the Company maintains proper records:

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

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