29 SEPTEMBER 2011 NEW ZEALAND GAZETTE, No. 147 4225

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

recognised exchange means an authorised futures exchange or any exchange in a country other than New Zealand which is authorised by the laws of that country to operate as a futures exchange.

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

remuneration means any commission, fee or other benefit, whether pecuniary or non-pecuniary, and whether direct or indirect; but in the case of an adviser, does not include wages or salary which are of a fixed amount.

specified futures contract means a futures contract, other than a futures contract which is made on or effected through a recognised exchange, to which the Company is a party.

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.

3. Authorisation

(1) The Company is authorised to carry on the business of dealing in futures contracts generally.

(2) The authorisation is subject to the conditions that:

(a) the Company does not carry on the business of dealing in futures contracts on behalf of any person other than a person who has entered into a written client services agreement with the Company, and then only in accordance with the terms of that agreement;

(b) before the Company carries on the business of dealing in futures contracts on behalf of any person, the Company has provided that person with copies of the following:

(i) A document that clearly describes, for the prudent but non-expert investor, the risks associated with trading in futures contracts, including any specific risk factors that apply to trading in any of the particular contracts or classes of contracts dealt with by the Company;

(ii) one or more documents that clearly describe, for the prudent but non-expert investor, the class or classes of futures contracts in which the Company intends to deal on behalf of that person;

(iii) a disclosure statement which clearly sets out the following information:

A. the name and contact details of the Company;

B. a statement to the effect that the advice on futures contracts is regulated under the Company’s authorisation as a futures dealer and is not regulated under the Financial Advisers Act 2008;

C. a description of how the Company and its advisers are remunerated for futures dealing services;

D. a description of any other factors which may materially influence the advice given by the Company or its advisers;

E. the types of products the Company deals in, and if advice on any product is only provided by some advisers, which advisers can provide advice on each product;

F. details of any bankruptcy or insolvency event occurring in the past five years in respect of the Company or one of its advisers;

G. details of any disciplinary or criminal proceedings resulting in an adverse finding in the past five years in respect of the Company or one of its advisers;

H. details of any conviction for an offence of dishonesty against any of the Company’s advisers;

I. a description of the internal and external disputes resolution schemes available to the client, and an explanation of how to make a complaint; and

J. a description of the Financial Markets Authority’s role in authorising futures dealers, and details of how to contact the Financial Markets Authority; and

(iv) any document containing supplementary disclosure necessary to update matters covered, or required to be covered, in any of the documents referred to in (i) to (iii) above;

(c) 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;

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

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

(f) any Company document that states the Company has been authorised by the Financial Markets Authority to carry on the business of dealing in futures contracts includes a statement to the effect that:

(i) the Financial Markets Authority’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 Financial Markets Authority has not approved the client services agreement or any disclosure documents of the Company;

(g) in respect of any futures contract that is made on or effected through a recognised exchange, that any acquisition or disposal of the contract is effected through a person who is an authorised participant or member of the recognised exchange and who is authorised or licensed by the laws of the country in which it operates to deal in futures contracts;

(h) the Company, and its directors, employees and agents do not advise a client to enter into any futures which the Company or that adviser knows, or ought to know, is offered in breach of New Zealand law or the laws of the any overseas jurisdiction, or which is offered to a limited class of persons for which the client does not qualify;

(i) the Company must at all times ensure that each director, employee or agent of the Company understands, and may reasonably be expected to comply with, all laws and regulations which are applicable to the Company, including all requirements of this authorisation;