29 SEPTEMBER 2011 NEW ZEALAND GAZETTE, No. 147

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(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 subparagraph (i) to (iii) above;

(e) any acquisition or disposal of a futures contract is effected through a person who:

(i) is authorised or licensed by the laws of the country in which it operates to deal in futures contracts on behalf of that client and to hold client money for that purpose;

(ii) has entered into a written client agreement with that client detailing the terms and conditions of dealing in futures contracts and the handling of client money; and

(iii) in the case of a futures contract which is made on or effected through a recognised exchange, is a member or authorised participant of that recognised exchange;

(f) 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;

(g) 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;

(h) the Company must at all times ensure that each director, employee or agent of the Company who provides advice or discretionary investment management services in relation to futures contracts:

(i) exercises the care, diligence and skill that a reasonable adviser would exercise in the same circumstances;

(ii) has the competence, knowledge and skills to provide advice or discretionary investment management services to that client, and in respect of that product;

(iii) acts in the best interests of the client;

(iv) ensures that the client has sufficient information, in a form which enables the client to understand that information, to make an informed decision;

(v) ensures that the client understands whether or not any advice given takes into account the personal circumstances of the client; and

(vi) does not act in any way, or make any omission, which would bring the financial services profession, or any part of it, into disrepute;

(i) the Company has an appropriate compliance manual, and a copy of which has been lodged with the Financial Markets Authority;

(j) the Company has appointed a compliance reporter and entered into agreed upon procedures engagement terms with that compliance reporter, a copy of which has been lodged with the Financial Markets Authority;

(k) the agreed upon procedures engagement terms provide for (without limitation):

(i) the Company to provide the compliance reporter, within 10 days of the end of each month, a completed monthly internal compliance reports and monthly financial statements in the form approved by the Financial Markets Authority that have been certified as true and correct by the directors;

(ii) the compliance reporter to notify the Financial Markets Authority if the monthly report is not provided to it within the timeframe required by subparagraph (i) above, or shows non-compliance with any term of this authorisation, or any other adverse matter;

(iii) the review of, and reporting on, the dealing practices and systems of the Company against the practices and procedures set out in the Company’s compliance manual by the compliance reporter (including on-site inspections of the Company’s records and procedures), such review and reporting to be undertaken at least once in every six months;