1 NOVEMBER 2012 NEW ZEALAND GAZETTE, No. 131 3771

futures adviser service means a service provided by or on behalf of the Company in relation to a specified futures contract that would, but for section 14(1)(n) of the Financial Advisers Act 2008, constitute financial advice or a discretionary investment management service under that Act.

offence of dishonesty means:

(a) an offence described in any of sections 104, 105B, 108 to 117, and 217 to 266 of the Crimes Act 1961;

(b) an offence described in any of sections 15 to 20 of the Summary Offences Act 1981; and

(c) an offence under the laws of another jurisdiction which is equivalent to an offence referred to in paragraphs (a) or (b).

personalised futures adviser service means a futures adviser service that would, but for section 14(1)(n) of the Financial Advisers Act 2008, constitute a personalised service under that Act.

prescribed liquid funds amount is the amount specified in clause 6(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.

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; and remunerated has a corresponding meaning.

retail client has the meaning given to that term by the Financial Advisers Act 2008.

specified futures contract means an over-the-counter futures contract that the Company is, or intends to be, a party to and is described in a disclosure document.

surplus liquid funds has the meaning set out in clause 6(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 specified futures contracts.

(2) 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 5 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) before, or if not practicable before, as soon as practicable after, the Company provides, any personalised futures adviser service to any retail client in relation to a specified futures contract, the Company has provided that person with an adviser disclosure statement which clearly sets out the following information:

(i) The name and contact details of the Company;

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

(iii) 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;

(iv) a description of how the Company and its advisers are remunerated for futures dealing services;

(v) a description of any other factors which may materially influence the advice given by the Company or its advisers;

(vi) details of any bankruptcy or insolvency event occurring in the past five years in respect of the Company or one of its advisers;

(vii) 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;

(viii) details of any conviction for an offence of dishonesty against any of the Company’s advisers;

(ix) a description of the internal and external dispute resolution schemes available to the client, and an explanation of how to make a complaint; and

(x) a description of FMA’s role in authorising futures dealers, and details of how to contact FMA;

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

(i) FMA’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) FMA has not approved any agreements or any disclosure documents of the Company;

(g) the Company takes reasonable steps to ensure at all times 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 takes reasonable steps to ensure at all times that each adviser who provides futures adviser services to a client:

(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 futures adviser services to that client, and in respect of the relevant specified futures contract;