✨ Financial Regulations
NEW ZEALAND GAZETTE, No. 142
29 NOVEMBER 2012
(5) If a matter specified in clause 4(4) is not applicable to the class or classes of specified futures contracts to which a disclosure document relates, the disclosure document is not required to refer to that matter, and is not required to state that the matter is not applicable.
(6) Nothing in clause 4(4) limits the information, statements, or other matters that may be contained in a disclosure document.
- Capital adequacy requirements—(1) The Company must at all times be able to pay its debts as they become due in the normal course of business.
(2) The Company must ensure that its surplus liquid funds exceed at all times its prescribed liquid funds amount.
(3) The Company’s prescribed liquid funds amount is $1,000,000.
(4) The Company’s surplus liquid funds are the aggregate of all of its liquid assets, less any risk based reductions to its liquid assets, less its gross external liabilities.
(5) The Company’s liquid assets are:
(a) cash;
(b) cash equivalents (as defined by NZ IAS 7);
(c) trade receivables realisable within the next three months; and
(d) financial assets that have a ready market, which are valued at current market prices.
(6) In calculating the Company’s liquid assets, that calculation excludes:
(a) any client funds held by the Company;
(b) the value of any asset encumbered as a security against another person’s liability;
(c) the assets of any trust of which the Company is a trustee;
(d) any loans and advances to, or amounts owing by, any related party or associate; and
(e) any asset that directly or indirectly funds an investment in or loan to the Company itself.
(7) The Company must apply the following risk based reductions to the calculation of its liquid assets:
(a) For a futures contract entered into where the client has not paid to the Company any margin due in respect of that futures contract by the 2nd business day following the date the liability to make that margin payment arose, a reduction of 120% on that uncollected margin;
(b) for equity securities held or receivable by the Company including short positions:
(i) for leading equities (meaning NZSX listed equities or equities listed on the main board of an overseas exchange):
A. 10% for an equity ranked 1 to 50 in the leading index of the relevant exchange; or
B. 15% for all other equities quoted on the main board; and
(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 (Non Govt) | 4.0% | 7.0% | 8.5% | 10.0% |
| 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 (Non Govt) | 4.8% | 9.8% | 10.2% | 12.0% |
| Other | 7.2% | 9.6% | 12.0% | 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.
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NZ Gazette 2012, No 142
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Authorised Futures Dealers (Global Brokers (NZ) Limited) Notice 2012
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💰 Finance & RevenueFutures Dealers, Authorisation, Global Brokers (NZ) Limited, Securities Markets Act 1988, Financial Advisers Act 2008, Financial Markets Authority, Regulations, Disclosure, Compliance, Capital Adequacy, Reporting, Professional Indemnity Insurance