2240 NEW ZEALAND GAZETTE, No. 83 27 JUNE 2013

(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;

Conditions relating to client funds and client records

(n) the Company complies with Regulations 3 to 8, 14 to 17 and 22 to 24 of the Regulations as if the Company were a dealer for the purposes of those Regulations, and must, when a client’s position in respect of a specified futures contract is closed out, promptly pay any money owing to the client under that specified futures contract into a client bank account;

(o) the amount of a client’s margin which is withdrawn from the client bank account in relation to a particular specified futures contract does not exceed the lesser of:

(i) the amount described in the disclosure document relating to that specified futures contract in accordance with clause 4(4)(d) of this notice; or

(ii) the amount of margin payable by the Company to an approved counterparty in respect of a contract entered into by the Company to back off its exposure under the specified futures contract in respect of which the client has paid that margin;

(p) the Company maintains proper records:

(i) to record dealings in respect of specified futures contracts with clients, including the nature of any advice given to a client;

(ii) to record client money or property received, held or otherwise dealt with in connection with dealings in specified futures contracts; and

(iii) which are audited or reviewed, and reported on, in accordance with the Regulations;

Conditions relating to financial capacity

(q) the Company maintains proper accounting records, which are adequate to explain all transactions entered into by the Company and to enable the Company to prepare financial statements in accordance with generally acceptable accounting practice;

(r) the Company keeps its business records, including the records referred to in conditions (p) and (q) above, up to date, and in a form which enables those records to be made available for inspection by the Financial Markets Authority or its auditor promptly on request;

(s) the Company’s financial statements are prepared and registered as if the Company is an issuer in terms of the Financial Reporting Act 1993 and are audited at least once a year by a qualified auditor under the Financial Reporting Act 1993;

(t) the Company sends a copy of its audited financial statements to the Financial Markets Authority not more than three months after the end of each financial year;

(u) the Company at all times meets the capital adequacy requirements set out in clause 5 of this notice;

(v) the Company at all times meets the reporting requirements set out in clause 6 of this notice;

(w) the Company maintains adequate professional indemnity insurance for its business at all times;

Compliance reporter conditions

(x) the Company has appointed a compliance officer with responsibility for ensuring compliance with this notice;

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

(z) the Company has appointed a compliance reporter;

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

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

(i) 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;

(ii) a copy of the compliance reporter’s semi-annual reports to be sent to the Financial Markets Authority by the compliance reporter; and

(iii) the compliance reporter to give notice to the Financial Markets Authority before, or immediately upon, it resigning or retiring from its position as compliance reporter;

(cc) make available to the compliance manager any information the auditor requests to satisfy itself that the Company has complied with the capital adequacy requirements in clause 5, clauses 3(2)(n) and (o), and the policies and procedures set out in its compliance manual;

Reporting conditions

(dd) the Company must, within three months after the end of each financial year that commences after this notice comes into force, give a report to the Financial Markets Authority on the extent to which it has complied with its obligations under this notice in that financial year;

(ee) the Company must promptly provide to the Financial Markets Authority any information held by the Company which is requested by the Financial Markets Authority, for the purposes of any enquiry or investigation, or for the purpose of supervision of the Company in connection with the Company’s obligations under this notice; and

(ff) the Company immediately notifies the Financial Markets Authority in writing of any material matter concerning the Company’s authorisation as a futures dealer, including the following events: