1192 NEW ZEALAND GAZETTE, No. 40 5 APRIL 2012

(z) The applicant’s systems, policies and processes relating to disciplinary proceedings, including decisions whether to commence disciplinary proceedings, must ensure a principled, fair and consistent approach to addressing misconduct.

(aa) The applicant must have a sufficiently independent disciplinary body to adjudicate on alleged breaches of:

(i) auditing and assurance standards;

(ii) the Act or any other enactment that relates to the conduct of issuer audits;

(iii) the accredited body’s conduct rules; or

(iv) conditions of licences or registration.

(ab) Any appeals panels must be sufficiently independent, including of the disciplinary body and any other appeals panels who have previously considered matter before it.

(ac) The range of penalties which may be imposed by the disciplinary body and any appeals panels must include penalties which are sufficiently stringent to address the most serious breaches, and must include a scale of penalties which ensures a proportionate penalty can be imposed in relation to all breaches.

General Obligations

(ad) The applicant must have adequate and effective systems, policies and procedures which will enable it to comply with its conditions of accreditation, and to otherwise perform its functions and meet its obligations under the Act.

Dated at Wellington this 4th day of April 2012.

ELAINE CAMPBELL, Head of Compliance Monitoring, Financial Markets Authority.

au2073

Securities Markets Act 1988

The Authorised Futures Dealers (Financial Transmission Rights) Notice 2012

Pursuant to section 38 of the Securities Markets Act 1988, the Financial Markets Authority (FMA) gives the following notice.

Notice

1. Title, commencement and expiry—(1) This notice is the Authorised Futures Dealers (Financial Transmission Rights) Notice 2012.

(2) This notice comes into force on the day after its notification in the New Zealand Gazette.

(3) This notice expires on the close of 31 March 2017.

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

Act means the Securities Markets Act 1988.

approved participant means:

(a) A person whose principal business is purchasing or selling electricity; or

(b) A person who uses in excess of 10 GWh per annum of electricity; or

(c) Her Majesty The Queen in right of New Zealand, a Crown entity named in the Crown Entities Act 2004, or a State enterprise named in the First or Second Schedule to the State-Owned Enterprises Act 1986 (each as amended from time to time); or

(d) A member of the trade association known as the Major Electricity Users Group; or

(e) A registered bank as defined in the Reserve Bank of New Zealand Act 1989; or

(f) A person whose principal business is the investment of money or who, in the course of and for the purposes of their business, habitually invests money; or

(g) A person who is authorised to carry on the business of dealing in futures contracts under the Act; or

(h) A person authorised in another jurisdiction by the competent authority of that jurisdiction to deal in futures contracts; or

(i) A person that is a related body corporate of any of the persons listed in (a) to (h) above.

clearing manager means the person appointed by the Electricity Authority to perform the role of clearing manager under the Code.

Code means the Electricity Industry Participation Code made under the Electricity Industry Act 2010.

FTR means a financial transmission right created under subpart 6 of Part 13 of the Code.

FTR allocation plan has the meaning given to that term in the Code.

FTR manager means the person appointed by the Electricity Authority to perform the role of FTR manager under the Code.

(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.

3. Authorisation of FTR manager—(1) Subject to clause 3(2), the FTR manager is authorised to carry on the business of dealing in futures contracts that are FTRs on behalf of approved participants.

(2) The authorisation applies only to dealing in futures contracts in the course of the FTR manager carrying out the functions of the FTR manager in accordance with the Code and the FTR allocation plan.

(3) The authorisation is subject to the condition that the FTR manager:

(a) provides FMA with a copy of the initial FTR allocation plan;

(b) notifies FMA of any material changes, or any proposed material changes, to the Code or the FTR allocation plan as soon as practicable after becoming aware of the changes or proposed changes;

(c) notifies FMA of any change, or proposed change, to its status as FTR manager as soon as practicable after becoming aware of the changes or proposed changes;

(d) notifies FMA of any breaches by the FTR manager of this authorisation, the Code or the FTR allocation plan, in relation to dealing in FTRs as soon as practicable after becoming aware of the breach; and

(e) notifies FMA of any other material matter concerning its authorisation as a futures dealer as soon as practicable after becoming aware of the matter.