Australian Securities and Investments Commission Market Integrity Rules (Securities Markets – Capital) 2017 (Cth)

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ASIC Market Integrity Rules (Securities Markets – Capital) 2017
I, Oliver Harvey, acting with the written consent of the Minister, make the following market integrity rules under subsection 798G(1) of the Corporations Act 2001.
Dated this 14th day of November 2017

Signed by Oliver Harvey
as delegate of the Australian Securities and Investments Commission

Contents

Chapter 1: Introduction

Part 1.1Preliminary

1.1.1Enabling legislation

ASIC makes this instrument under subsection 798G(1) of the Corporations Act.

1.1.2Title

This instrument is ASIC Market Integrity Rules (Securities Markets – Capital) 2017.

1.1.3Commencement

(1) Each provision of this instrument other than Rule 1.1.3A commences on the later of:
(a)
4 December 2017; and
(b)
the day after this instrument is registered on the Federal Register of Legislation.
(2) Rule 1.1.3A commences on the later of:
(a)
7 May 2018; and
(b)
the day after this instrument is registered on the Federal Register of Legislation.
Note: The register may be accessed at following instruments are repealed:
(a)
ASIC Market Integrity Rules (APX Market-Capital) 2014;
(b)
ASIC Market Integrity Rules (ASX Market-Capital) 2014;
(c)
ASIC Market Integrity Rules (Chi-X Australia Market-Capital) 2014.
Note: There is no penalty for this Rule.
1.1.4Scope of these Rules
These Rules apply to:
(a)
the activities or conduct of the Markets;
(b)
the activities or conduct of persons in relation to the Markets; and
(c)
the activities or conduct of persons in relation to financial products traded on the Markets,
as specified in each Chapter, Part or Rule.
Note: There is no penalty for this Rule.
1.1.4ATransitional
A person other than an NSXA AOP Participant does not have to comply with any provision of this instrument until 7 May 2018.
Note: There is no penalty for this Rule.
1.1.5Entities that must comply with these Rules
The following entities must comply with these Rules:
(a)
Market operators;
(b)
Market Participants; and
(c)
Other Regulated Entities;
as specified in each Rule.
Note: There is no penalty for this Rule.
1.1.6Conduct by officers, Employees or agents
In these Rules, conduct engaged in on behalf of a person:
(a)
by an officer, Employee, or other agent of the person, and whether or not within the scope of the actual or apparent authority of the officer, Employee, or other agent; or
(b)
by any other person at the direction or with the consent or agreement (whether express or implied) of an officer, Employee, or other agent of the person, and whether or not the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the officer, Employee, or other agent,
is deemed to have been engaged in by the person.
Note: There is no penalty for this Rule.
1.1.7State of mind of a person
(1) If for the purposes of these Rules in respect of conduct engaged in by a person, it is necessary to establish the state of mind of the person, it is sufficient to show that an officer, Employee, or other agent of the person, being an officer, Employee, or other agent by whom the conduct was engaged in and whether or not the conduct was within the scope of the actual or apparent authority of that officer, Employee, or other agent, had that state of mind.
(2) In subrule (1), a reference to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the person’s intention, opinion, belief or purpose.
Note: There is no penalty for this Rule.
Part 1.2Waiver
1.2.1Waiver of Rules
(1) Subject to Rule 1.2.3, ASIC may relieve any person or class of persons from the obligation to comply with a provision of these Rules, either generally or in a particular case or category, and either unconditionally or subject to such conditions as ASIC thinks fit.
(2) If any conditions on a waiver given under subrule (1) are imposed, all of the conditions must be complied with for the waiver to be effective.
(3) ASIC may withdraw, in writing, a waiver given under subrule (1) at any time.
(4) Any request by a person for a waiver under subrule (1) must be in writing.
(5) Any waiver given under subrule (1), and any conditions imposed on that waiver, must be in writing.
(6) ASIC may publish notice of a waiver given under subrule (1).
Note: There is no penalty for this Rule.
1.2.2Compliance with conditions
Failure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.
Maximum penalty: $1,000,000
1.2.3Period during which relief applies
ASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.
Note: There is no penalty for this Rule.
1.2.4Register
(1) ASIC may establish and maintain a register for recording details of relief granted under Rule 1.2.1 and may enter the following details in the register:
(a)
the date that the relief takes effect;
(b)
the person or class of persons relieved from the obligation;
(c)
the provision to which the relief applies;
(d)
brief reasons for the relief; and
(e)
any conditions that apply to the relief.
(2) ASIC may publish the register referred to in subrule (1).
Note: There is no penalty for this Rule.
Part 1.3Notice, notification and service of documents
1.3.1Market Participant to have email system
A Market Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.
Note: There is no penalty for this Rule.
1.3.2Methods of giving notice in writing
Unless otherwise specified in a Rule, ASIC may give a notice under these Rules by any of the following methods:
(a)
delivering it to the recipient personally;
(b)
leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;
(c)
sending it by facsimile to the recipient’s facsimile number last notified to ASIC;
(d)
a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;
(e)
specific email by any method which identifies a person or person’s title as addressee and no notice of non-delivery has been received;
(f)
broadcast email by any method which identifies the addressee and which, having regard to all the relevant circumstances at the time, was as reliable as appropriate for the purposes for which the information was communicated.
Note: There is no penalty for this Rule.
Part 1.4Interpretation
1.4.1References to time
In these Rules a reference to time is to the time in Sydney, Australia.
Note: There is no penalty for this Rule.
1.4.2Words and expressions defined in the Corporations Act
Words and expressions defined in the Corporations Act will unless otherwise defined or specified in these Rules or the contrary intention appears, have the same meaning in these Rules.
Note: There is no penalty for this Rule.
1.4.3Definitions
AQUA Product means a financial product which is:
(a)
a financial product issued by or provided pursuant to a Managed Fund;
(b)
an ETF Security; or
(c)
a Structured Product,
which is admitted to Trading Status as an AQUA Product or to the AQUA Quote Display Board.
AQUA Product Issuer means an entity which issues, distributes or makes available AQUA Products and which has been admitted as an AQUA Product Issuer.
AQUA Quote Display Board means the facility provided by a Market operator for AQUA Product Issuers and Trading Participants to advertise their interest in acquiring or disposing of AQUA Products.
ASIC means the Australian Securities and Investments Commission.
ASX means ASX Limited (ACN 008 624 691).
ASX Market means the financial market operated by ASX under Australian Market Licence (ASX Limited) 2002.
Automated Order Processing means the process by which orders are registered in a Trading Participant’s system and, if accepted for submission into a Trading Platform by the Trading Participant, submitted as corresponding Trading Messages without being keyed or rekeyed by a DTR.
Business Day means a day other than a Saturday, Sunday, New Year’s Day, Good Friday, Easter Monday, Christmas Day or Boxing Day.
Cash Market Product means an Equity Market Product, a Quoted Product, a Warrant admitted to Trading Status, an AQUA Product admitted to Trading Status or to the AQUA Quote Display Board, a CGS Depository Interest admitted to Trading Status and any other product that a Market operator authorises for trading on its Trading Platform as a Cash Market Product.
CGS Market means a financial market:
(a)
on or through which offers to acquire or dispose of CGS Depository Interests are made or accepted;
(b)
the operator of which is licensed under subsection 795B(1) of the Corporations Act; and
(c)
the operator of which has entered into contractual arrangements with the Australian Office of Financial Management to offer trading services in CGS Depository Interests.
CHESS Depositary Interest has the meaning given to the term “CDI” by rule 2.13.1 of the operating rules of ASX Settlement Pty Limited (ACN 008 504 532).
Chi-X Australia means Chi-X Australia Pty Ltd (ACN 129 584 667).
Chi-X Market means the market operated by Chi-X Australia under Australian Market Licence (Chi-X Australia Pty Ltd) 2011.
Clearing Facility means, in relation to a transaction, the clearing and settlement facility, if any, within the meaning of section 761A of the Corporations Act, through which the transaction has been or will be cleared.
Clearing Participant means a person admitted as a participant under the Clearing Rules.
Clearing Rules means:
(a)
in relation to a particular Clearing Facility, the operating rules, procedures, practices, directions, decisions and requirements of that Clearing Facility;
(b)
in relation to a particular Clearing Participant, the rules of the Clearing Facility to which that Clearing Participant is subject.
Corporations Act means the Corporations Act 2001 (Cth).
Derivatives Market Contract means a Futures Market Contract, an Options Market Contract and any other contract that a Market operator authorises for trading on its Trading Platform as a Derivatives Market Contract.
Derivatives Market Transaction means a transaction between Trading Participants for one or more Derivatives Market Contracts.
DTR means a representative of a Trading Participant who has been authorised by the Trading Participant to submit Trading Messages to a Trading Platform on behalf of the Trading Participant.
Employee in relation to a Market Participant includes a director, employee, officer, agent, representative, consultant or adviser of that Market Participant, or an independent contractor who acts for or by arrangement with a Market Participant.
Equity Market Product means:
(a)
a share in a body;
(b)
a financial product referred to in subparagraph 764A(1)(b)(i) or subparagraph 764A(1)(ba)(i) of the Act; or
(c)
a right (whether existing or future and whether contingent or not) to acquire, by way of issue, the following under a rights issue:
(i)
a share covered by paragraph (a); or
(ii)
a financial product covered by paragraph (b); or
(d)
a CHESS Depositary Interest,
admitted to quotation under a Market’s operating rules, but does not include a CGS Depository Interest.
Equity Securities means:
(a)
shares in a body corporate or an unincorporated body other than redeemable preference shares which are Loan Securities in accordance with paragraph (c) of the definition of Loan Securities; or
(b)
interests in a managed investment scheme, except those referred to in paragraph (d) of the definition of Loan Securities; or
(c)
renounceable and non-renounceable rights to subscribe for Securities other than Loan Securities; or
(d)
options over unissued Securities other than Loan Securities; or
(e)
convertible notes; or
(f)
any Securities which are determined to be Equity Securities by the operator of a Market on which those Securities are able to be traded in accordance with the operating rules of the Market,
(g)
but does not include Options Market Contracts, or Securities determined to be Loan Securities by the operator of a Market where those financial products are able to be traded in accordance with the operating rules of the Market.
ETF means a Managed Fund:
(a)
the Equity Securities of which are:
(i)
listed on a Market;
(ii)
able to be traded on a Market; or
(iii)
admitted to Trading Status as an AQUA Product or to the AQUA Quote Display Board;
(b)
with power and approval to continuously issue and have quoted on the relevant Market, Equity Securities in the Managed Fund;
(c)
which provides for the issue of new Equity Securities in return for the subscriber transferring to the Managed Fund a portfolio of Securities, cash or a combination of Securities and cash; and
(d)
for which the price of the Underlying Instrument is continuously disclosed or can be immediately ascertained.
ETF Security means a financial product issued by or provided pursuant to an ETF.
Family Trust means a trust in which:
(a)
the person or the Immediate Family of the person is the sole or majority beneficiary; or
(b)
the person has the ability to remove the trustee of the trust and replace that trustee with his or her own nominee.
Futures Market Contract means a contract on the terms of a Futures Series.
Futures Series means a set of contractual terms on which futures contracts are authorised for trading by a Market operator.
Immediate Family in relation to a person, means that person’s spouse and any non-adult children.
IR Plus Market means the market operated by IR Plus Securities Exchange Limited (ACN 087 708 898) under Australian Market Licence (IR Plus Securities Exchange Limited) 2002.
Issuer means, in relation to a Cash Market Product, an Equity Market Product or other financial product able to be traded on a Market, the legal entity which issues the relevant product.
Loan Securities means:
(a)
debentures, stocks or bonds issued or proposed to be issued by a government; or
(b)
debentures of a body corporate or an unincorporated body; or
(c)
redeemable preference shares which have a fixed and certain date for redemption, other than shares having a participating entitlement to rights or options referred to in paragraphs (c) and (d) of the definition of Equity Securities; or
(d)
interests in a managed investment scheme, relating to a financial or business undertaking or scheme, common enterprise or investment contract, the trustee or representative or responsible entity of which only invests in or acquires one or more of Loan Securities, mortgages and cash; or
(e)
in relation to a Market, any Securities which are determined to be Loan Securities by the operator of the Market on which those Securities are able to be traded in accordance with the operating rules of the Market,
but does not include Options Market Contracts or, in relation to a Market, Securities determined to be Equity Securities by the operator of the Market where those financial products are able to be traded in accordance with the operating rules of the Market.
Managed Fund means:
(a)
a managed investment scheme which is a registered managed investment scheme pursuant to section 601EB of the Corporations Act or a managed investment scheme which ASIC has exempted from those registration requirements; or
(b)
a foreign company which has the economic features of a managed investment scheme, namely:
(i)
investors contribute money or money’s worth to acquire rights to benefits produced by the collective investment;
(ii)
contributions of investors are to be pooled, or used in a common enterprise, to produce financial benefits, or benefits consisting of rights or interests in property, for investors holding financial products in the collective investment; and
(iii)
investors holding financial products issued in the collective investment do not have day to day control over the operation of the collective investment.
Market means any of the following:
(a)
the ASX Market;
(b)
the Chi-X Market;
(c)
the IR Plus Market;
(d)
the NSXA Market;
(e)
the SSX Market.
NSXA means National Stock Exchange of Australia Limited (ACN 000 902 063).
NSXA AOP Participant means a Participant of the NSXA Market that has either:
(a)
given to ASIC an AOP Initial Certification in respect of the NSXA Market under Rule 5.6.6 of the ASIC Market Integrity Rules (Securities Markets) 2017; or
(b)
used its systems for Automated Order Processing in relation to the NSXA Market.
NSXA Market means the market operated by NSXA under Australian Market Licence (National Stock Exchange of Australia Limited) 2002.
Official Quotation, in relation to financial products, means admission to quotation by a Market operator under the listing rules of that Market.
Option Series means a set of contractual terms on which options are authorised by a Market operator for trading on its Market.
Options Market Contract means a contract on the terms of an Option Series.
Order means, unless the contrary intention appears:
(a)
in relation to Cash Market Products, an instruction to purchase or sell Cash Market Products, or an instruction to amend or cancel a prior instruction to purchase or sell Cash Market Products;
(b)
in relation to Derivatives Market Contracts, an instruction to enter into a Derivatives Market Transaction, or an instruction to amend or cancel a prior instruction to enter into a Derivatives Market Transaction; and
(c)
in relation to other financial products, an instruction to purchase or sell financial products, or an instruction to amend or cancel a prior instruction to purchase or sell financial products.
Other Regulated Entities means entities prescribed by regulations made for the purposes of paragraph 798H(1)(c) of the Corporations Act, that must comply with these Rules.
Participant, in relation to a Market, means a person who is allowed to directly participate in the Market under the operating rules of the Market other than as a recognised affiliate.
Pre-Commencement Market Integrity Rules means:
(a)
the ASIC Market Integrity Rules (APX Market-Capital) 2014;
(b)
the ASIC Market Integrity Rules (ASX Market-Capital) 2014; and
(c)
the ASIC Market Integrity Rules (Chi-X Australia Market-Capital) 2014.
Principal Trader means a Market Participant with Trading Permission for one or more Products which limits it to trading on its own behalf.
Product means a Cash Market Product or a Derivatives Market Contract, as applicable.
Quoted Product means a financial product that has been granted Official Quotation.
Rules means these market integrity rules.
Security or security means:
(a)
a security within the meaning of section 761A of the Corporations Act; or
(b)
a managed investment product.
SSX means Sydney Stock Exchange Limited (ACN 080 399 220).
SSX Market means the market operated by SSX under Australian Market Licence (Sydney Stock Exchange Limited) 2004.
Structured Product means a Security or derivative:
(a)
which gives the holder financial exposure to the performance of one or more Underlying Instruments;
(b)
the value of which is linked to the performance of those Underlying Instruments; and
(c)
whereby investors do not have day to day control over the operation of the entity which issues or provides the Security or derivative.
Terms of Issue means, in relation to Warrants, rights, conditions and obligations of the Warrant-Issuer and the holder of the Warrant.
Trading Messages means those messages submitted into a Trading Platform relating to trading functions, such as orders, amendment or cancellation of orders and the reporting or cancellation of Market transactions on the Trading Platform.
Trading Participant means a Market Participant which has Trading Permission in respect of one or more financial products.
Trading Permission means the right to submit Trading Messages in a Trading Platform.
Trading Platform means a facility made available by a Market operator to Market Participants of the relevant Market for the entry of Trading Messages, the matching of Orders, the advertisement of invitations to trade and the reporting of transactions.
Trading Status means authorisation by a Market operator or a CGS Market operator for a financial product to be traded on the relevant Market or CGS Market.

Underlying Instrument means:
(a)
in relation to Option Series and Futures Series, the instrument which underlies that Option Series or Futures Series;
(b)
in relation to Warrants means the financial product, index, foreign or Australian currency or commodity which underlies that Warrant; and
(c)
in relation to AQUA Products and other financial products, means the financial product, index, foreign or Australian currency, commodity or other point of reference for determining the value of the relevant product.
Warrant has the meaning given by regulation 1.0.02 of the Corporations Regulations 2001.
Warrant-Issuer means an entity approved by a Market operator to issue Warrants.
Note: There is no penalty for this Rule.

Part 1.5Participants of multiple Markets

1.5.1Participants may rely on notifications

Where these Rules require a Market Participant to give to ASIC any document (however described) in relation to the Market Participant for a Market, the Market Participant may give to ASIC the same document in relation to more than one Market, provided that:
(a)
the Market Participant has notified ASIC in writing that it intends to comply with these Rules by relying on that document, or on documents of that kind, in relation to each Market to which the document applies; and
(b)
the document contains all of the information that would be required to be in the document if it were given separately in relation to each Market.
Note: There is no penalty for this Rule.

Part 1.6Transitional

1.6.1Status of notifications and certifications given by a Market Participant under the Pre-Commencement Market Integrity Rules
(1) This Rule applies if:
(a)
a Market Participant gave ASIC a written notification or certification under the Pre-Commencement Market Integrity Rules; and
(b)
the notification or certification has not been withdrawn or otherwise ceased to have effect; and
(c)
the power or obligation in the Pre-Commencement Market Integrity Rules to give the notification or certification is incorporated under a corresponding provision in these Rules.
(1A) For the purposes of this Rule, a provision (old provision) of the Pre-Commencement Market Integrity Rules corresponds to a provision (new provision) of these Rules (and vice versa) if the old provision and the new provision are substantially the same.
(1B) For the purposes of subrule (1A), differences of all or any of the following kinds are not sufficient to mean that two provisions are not substantially the same:
(a)
differences in the numbering of the provisions;
(b)
differences of a minor technical nature (for example, differences in punctuation, or differences that are attributable to the correction of incorrect cross-references);
(c)
the fact that one of the provisions refers to a corresponding previous law and the other does not;
(d)
other differences that are attributable to the fact that these Rules apply to more than one Market.
(2) The notification or certification:
(a)
is taken to have been given to ASIC by the Market Participant under the corresponding provision in these Rules; and
(b)
will continue in its existing form, and continue to have the same effect under these Rules, as when given under the Pre-Commencement Market Integrity Rules.
Note: There is no penalty for this Rule.

Chapter 8: Capital requirements

Part 8.1Preliminary

8.1.1Definitions

In this Chapter:
Approved Clearing Facility means ASX Clear Pty Limited (ACN 001 314 503).
Risk-Based Capital Requirements means the requirements set out in Schedule 1A.
Note: There is no penalty for this Rule.

Part 8.2Application

8.2.1Market Participant to comply with Risk-Based Capital Requirements
A Market Participant must at all times comply with the Risk-Based Capital Requirements, unless:
(a)
the Market Participant is only a Principal Trader; or
(b)
the Market Participant is a Clearing Participant of an Approved Clearing Facility and complies with the capital requirements under the Clearing Rules.
Maximum penalty: $1,000,000
Note: The Risk-Based Capital Requirements are set out in Schedule 1A.

Chapter 9: Accounts and audit

Part 9.1AAPreliminary

9.1AA.1Definitions

In this Chapter:
Approved Clearing Facility means ASX Clear Pty Limited (ACN 001 314 503).
Approved Deposit Taking Institution means:
(a)
an authorised deposit taking institution under section 5 of the Banking Act 1959 (Cth);
(b)
a banking institution which has its activities formally regulated in accordance with the standards of the Basel Committee on Banking Supervision; or
(c)
an institution which has been given a risk weighting by the Australian Prudential Regulation Authority equivalent to an authorised deposit taking institution referred to in paragraph (a).
Approved Subordinated Debt means an amount owing by a Market Participant under a subordination arrangement which is approved by ASIC under Rule S1A.2.4.
Approved Subordinated Loan Deed means, in respect of a subordination arrangement, a deed which:
(a)
is executed:
(i)
by the lender and ASIC under seal or by such equivalent method expressly recognised under the Corporations Act;
(ii)
in the case of a Market Participant which is a company, by the Market Participant under seal or by such equivalent method expressly recognised under the Corporations Act; and
(iii)
in the case of a Market Participant which is a partnership, by each of its partners;
(b)
sets out details of the terms governing any subordinated debt regulated by the subordination arrangement or identifies the document which does so;
(c)
contains those provisions required by ASIC including without limitation, provisions to the effect that:
(i)
alterations to the subordinated loan deed or the terms or details of any subordinated debt regulated by the subordination arrangement cannot be made unless the agreement of all parties is obtained and the variation is executed in the manner required under paragraph (a);
(ii)
ASIC must be satisfied that the Market Participant has made adequate arrangements to ensure that Schedule 1A will be complied with and will continue to be complied with upon the maturity date of any loan for a fixed term;
(iii)
ASIC must be given full particulars of any debt to be regulated by the subordination arrangement under the subordinated loan deed prior to such debt being created; and
(iv)
prior to the Bankruptcy of the Market Participant, repayment of any subordinated debt regulated by the subordination arrangement can only occur in accordance with subrules S1A.2.4(6) and (7); and
(d)
contains specific acknowledgment by the lender of the matters set out in paragraphs S1A.2.4(2)(a) and (b).
Bankruptcy means in respect of an entity:
(a)
the entity becomes an externally administered body corporate within the meaning of the Corporations Act;
(b)
the entity becomes an individual who is an insolvent under administration within the meaning of the Corporations Act;
(c)
if the entity is a partnership, the entity is wound up or dissolved or a liquidator is appointed to it;
(d)
a person takes control of the entity’s property for the benefit of the entity’s creditors because the entity is, or is likely to become, insolvent;
(e)
the entity enters into an arrangement, composition or compromise with, or assignment for the benefit of, all of its creditors or any class of them; or
(f)
anything analogous to, or having a substantially similar effect to the events specified in paragraphs (a) to (e) happens to the entity under the laws of any applicable jurisdiction.
CFD means contract for difference.
Classical ETF means a managed fund that meets all of the following criteria:
(a)
that is listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act);
(b)
where, under an open prospectus, the units in the fund can only be subscribed for and redeemed in kind, on demand and via the exchange of a defined basket of Equity securities;
(c)
that has a “passive” investment strategy designed to replicate a stock index at all times and this is evidenced by the holding of physical securities in weightings that predominantly match the stock index the fund has been issued over, and accordingly, any cash or Derivative components must be immaterial and must not be used to gear the fund;
(d)
where the underlying assets are known on a daily basis; and
(e)
that is subscribed for and redeemed in a “primary” market via either a Market Participant or the fund issuer, and existing units are traded in a “secondary” market provided through a stock exchange.
Client Balance means an individual Counterparty’s net debit or credit balance with a Market Participant arising from non-margined Financial Instruments.
Core Capital means:
(a)
in the case of a Market Participant which is a company, the sum of:
(i)
all ordinary issued shares to the extent that those shares are paid-up;
(ii)
all non cumulative Preference Shares;
(iii)
all reserves, excluding revaluation reserves other than Financial Asset Revaluation Reserves; and
(iv)
opening retained profits/losses adjusted for all current year movements; and
(b)
in the case of a Market Participant which is a partnership, the sum of the partners’ current and capital accounts.
Counterparty means in respect of a transaction to which a Market Participant is a party, another party to that transaction whether that person is a counterparty or a client.
Counterparty Risk Requirement means the greater of:
(a)
zero; and
(b)
the absolute sum of the counterparty risk amounts calculated in accordance with Annexure 1 to this Schedule 1A less any provision raised for doubtful debts.
Note: The provision for doubtful debts must relate to a specific Counterparty receivable for which a counterparty risk amount has been calculated in accordance with Annexure 1 or to cover the possibility of a Counterparty or Client Balance becoming doubtful. A Market Participant must not deduct a provision amount from an individual counterparty risk amount.
Debt Derivative includes:
(a)
a convertible note (except to the extent that Annexure 3 to this Schedule 1A provides for the treatment of a convertible note as an equity position);
(b)
an interest rate Swap;
(c)
a Forward Rate Agreement;
(d)
a forward contract over a Debt Instrument;
(e)
a Future over a Debt Instrument and a Future over an index or basket product based on Debt Instruments;
(f)
an index or basket product based on Debt Instruments; and
(g)
an Option over a Debt Instrument and an Option over any of the products referred to in paragraphs (a) to (f),
but does not include an instrument that falls within the definition of Equity Derivative or Foreign Exchange Derivative.
Debt Instrument includes:
(a)
a debt security without call or put provisions;
(b)
a discount security without call or put provisions;
(c)
a non-convertible preference share;
(d)
a redeemable preference share with a fixed and certain date for redemption; and
(e)
an interest in a managed investment scheme investing only in Debt Instruments, mortgages or cash, including an interest in a Hybrid ETF or Other Managed Fund that is issued over physical Debt Instruments only (ignoring any immaterial percentage of cash or Derivatives also included in the Hybrid ETF or Other Managed Fund and used only for hedging purposes),
but does not include an instrument that falls within the definition of Equity.
Derivative includes:
(a)
an Equity Derivative;
(b)
a Debt Derivative; and
(c)
a Foreign Exchange Derivative,
but does not include an instrument that falls within the definition of Equity or Debt Instrument.
Equity includes:
(a)
a share other than a share referred to in paragraphs (c) and (d) of the definition of Debt Instrument;
(b)
a depository receipt;
(c)
an instalment receipt;
(d)
an interest in a managed investment scheme, including an interest in a Hybrid ETF or an Other Managed Fund that is issued over:
(i)
physical Equities only;
(ii)
physical Debt Instruments and property;
(iii)
physical Equities, physical Debt Instruments and property;
(iv)
physical Equities and property; or
(v)
physical property only,
(ignoring any immaterial percentage of cash or Derivatives also included in the Hybrid ETF or Other Managed Fund and used only for hedging purposes), other than an interest referred to in paragraph (e) of the definition of Debt Instrument,
but does not include an instrument that falls within the definition of Debt Instrument.
Equity Derivative includes:
(a)
an equity Swap;
(b)
a forward contract over an Equity;
(c)
a Future over an Equity and a Future over a basket or index product based on Equities;
(d)
an index or basket product based on Equities (including a Classical ETF);
(e)
a renounceable or non-renounceable right to subscribe for an equity;
(f)
an Option over an Equity (whether issued or unissued) and an Option over any of the products referred to in paragraphs (a) to (d); and
(g)
an exchange traded CFD over:
(i)
an Equity; or
(ii)
a basket or index product based on Equities,
but does not include an instrument that falls within the definition of Debt Derivative or Foreign Exchange Derivative.
Excluded Asset means:
(a)
a fixed asset;
(b)
an intangible asset;
(c)
a future income tax benefit;
(d)
a non current asset;
(e)
a deposit with or loan to a person other than:
(i)
a deposit or loan with an Approved Deposit Taking Institution;
(ii)
a deposit or loan to the extent the balance is secured by collateral which is Liquid, evidenced in writing and valued at the mark-to-market value; or
(iii)
a deposit of funds as a margin or deposit with a person licensed to trade or clear Futures or Options to the extent that those funds relate to an open position;
(f)
a deposit with a third party clearing organisation;
(g)
a Related/Associated Person Balance to the extent the balance is not secured by collateral which is:
(i)
Liquid;
(ii)
under the control of the Market Participant, able to be accessed by the Market Participant without the approval of a third party and not otherwise encumbered;
(iii)
evidenced in writing by a legally binding agreement between the Market Participant and the Related/Associated Person in circumstances where the Market Participant has established that the Related/Associated Person and the persons signing the agreement have the legal capacity to enter into the agreement and provide the nominated collateral; and
(iv)
valued at the mark-to-market value;
(h)
a debt which was reported or created more than 30 days previously, other than a debt:
(i)
from another Market Participant that is not an Related/Associated Person; or
(ii)
which is secured by collateral which is Liquid, evidenced in writing and valued at the mark-to-market value;
(i)
a prepayment (being an expense which has been paid during one accounting period for a term which extends beyond the end of that period) which is not Liquid or which is Liquid but has been made in respect of an item of expenditure that is specifically required to be made by the Market Participant for the Market Participant to comply with the requirements of these Rules or the operating rules of a Market;
(j)
an asset which is not Liquid; or
(k)
an asset which is Liquid but which has a charge against it (in whole or in part) where the purpose of the charge is to raise funds for use outside the ordinary course of the Market Participant’s securities or derivatives business.
Excluded Liability means the maximum liability specified in a guarantee or indemnity under paragraph S1A.2.6(1)(c).
Family Trust means a trust in which:
(a)
the person or the Immediate Family of the person is the sole or majority beneficiary; or
(b)
the person has the ability to remove the trustee of the trust and replace the trustee with his or her own nominee.
Financial Asset Revaluation Reserves means revaluation reserves relating to available for sale financial assets as defined in accordance with accounting standards which are generally accepted in Australia or other accounting standards approved by ASIC under subrule S1A.2.7(3).
Financial Instrument means:
(a)
an Equity;
(b)
a Debt Instrument; and
(c)
a Derivative.
Foreign Exchange Derivative includes:
(a)
a forward contract over foreign currency;
(b)
a Future over foreign currency;
(c)
an Option over foreign currency; and
(d)
an exchange traded CFD over an exchange rate or foreign currency,
but does not include an instrument that meets the definition of Equity Derivative or Debt Derivative.
Forward Rate Agreement means an agreement in which two parties agree that:
(a)
one party will make payments to the other of an amount of interest based on an agreed interest rate for a specified period from a specified date applied to an agreed principal amount;
(b)
no commitment is made by either party to lend or borrow the principal amount; and
(c)
the exposure is limited to the interest difference between the agreed and actual market rates at settlement.
Future means a contract which is traded on an exchange, subject to a Primary Margin Requirement and which is:
(a)
a contract to make an adjustment between the parties on an agreed future date as to the value on that date of an interest rate, a foreign currency, an Equity, basket or index, or some other agreed factor; or
(b)
a deliverable bond futures contract or deliverable share futures contract.
Hybrid ETF means a managed fund:
(a)
that is listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act); and
(b)
where, under an open prospectus, the units can only be subscribed for and redeemed in cash or in kind; and
(c)
that is subscribed for and redeemed in a “primary” market and existing units are traded in a “secondary” market; or
(d)
that does not satisfy all of the requirements of a Classical ETF but satisfies the three criteria referred to in paragraphs (a), (b) and (c).
Immediate Family in relation to a person means that person’s spouse and any non-adult children.
Large Exposure Risk Requirement is the absolute sum of a Market Participant’s:
(a)
counterparty large exposure risk amount calculated in accordance with Annexure 2 to this Schedule 1A; and
(b)
issuer large exposure risk amount calculated in accordance with Annexure 2 to this Schedule 1A.
Liquid means realisable or otherwise convertible to cash within 30 days and in the case of a Financial Instrument, means the Financial Instrument meets the following criteria:
(a)
there are genuine independent offers from third parties to the Market Participant;
(b)
prices or rates exist that closely approximate the last sale price or rate in the Financial Instrument (whether exchange traded or over-the-counter);
(c)
payment/settlement can be effected within the settlement conventions applicable to the Financial Instrument; and
(d)
there is sufficient liquidity in the market to ensure a ready sale of the position held.
Liquid Capital means the sum of:
(a)
Core Capital;
(b)
cumulative Preference Shares;
(c)
Approved Subordinated Debt; and
(d)
revaluation reserves other than Financial Asset Revaluation Reserves;
less the sum of:
(e)
Excluded Assets; and
(f)
Excluded Liabilities.
Liquid Margin means the amount calculated by deducting the Total Risk Requirement amount from the amount of Liquid Capital.
Non-Standard Risk Requirement means the amount calculated in accordance with Rule S1A.2.9 to cover unusual or non-standard exposures.
Operational Risk Requirement means the amount calculated in accordance with subrule S1A.2.3(1) which is required to cover exposures associated with commencing and remaining in business arising separately from exposures covered by other risk requirements.
Option means a contract which gives the holder the option or right, exercisable at or before a specified time to:
(a)
buy (whether by way of issue or transfer) or sell a quantity of a Financial Instrument or a foreign currency; or
(b)
be paid an amount of money calculated by reference to the value of a Financial Instrument, foreign currency or index as specified in the contract.
Other Managed Fund means a managed fund:
(a)
that is not listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act); or

(b)
that is listed and quoted on a stock exchange but does not satisfy all of the requirements of a Classical ETF or Hybrid ETF.
Position Risk Requirement is the absolute sum of the position risk amounts for a Market Participant’s:
(a)
Equity and Equity Derivative positions calculated in accordance with Parts A3.1 to A3.9 of Annexure 3 to this Schedule 1A;
(b)
Debt Instrument and Debt Derivative positions calculated in accordance with Parts A3.10 to A3.17 of Annexure 3 to this Schedule 1A; and
(c)
foreign exchange and Foreign Exchange Derivative positions calculated in accordance with Parts A3.18 to A3.22 of Annexure 3 to this Schedule 1A.
Preference Share means a preference share that is redeemable solely at the request of the Market Participant.
Primary Margin Requirement means the amount which a Market Participant lodges or is notionally required to lodge as a deposit to cover potential daily worse case price movements in the relevant market, lodged in accordance with the rules of an exchange or clearing house against open positions registered in the name of the Market Participant on the exchange or clearing house.
Related/Associated Person means:
(a)
a partner, director, employee, officer or consultant of a Market Participant or of a company which is a partner of a Market Participant;
(b)
a person who is a member of the Immediate Family of a person referred to in paragraph (a);
(c)
the trustee of a Family Trust of a person referred to in paragraph (a);
(d)
an entity which is:
(i)
controlled by a person referred to in paragraphs (a), (b) or (c) or any of those persons acting together; or
(ii)
a corporation in which a person referred to in paragraphs (a) or (b) is beneficially entitled to more than 50% of the issued capital;
(e)
an entity which is the holding company, or which is controlled by the holding company, of a Market Participant or of a company which is a partner of a Market Participant;
(f)
a person who is a Substantial holder of a Market Participant or of a company which is a partner of a Market Participant;
(g)
an associate of a Market Participant (as defined in each section of Part 1.2, Division 2 of the Corporations Act) or of a company which is a partner of a Market Participant; and
(h)
a lender who is a party to an Approved Subordinated Loan Deed or a related entity or associate of that lender.
Related/Associated Person Balance is an amount owing to the Market Participant by a person who is a Related/Associated Person of the Market Participant and excludes an amount owing as a result of:
(a)
the deposit with, loans to or other amounts owing from an Approved Deposit Taking Institution;
(b)
the deposit of funds as a margin or deposit with a person licensed to trade or clear Futures or Options to the extent that those funds relate to an open position; or
(c)
a transaction in a Financial Instrument under Annexure 1 to this Schedule 1A which is made on terms no more favourable to the Related/Associated Person than those on which it would be reasonable to expect the Market Participant to make if it had entered into the transaction on an arm’s length basis, but not including sundry fees, interest or similar amounts owing on such transactions; or
(d)
brokerage or similar amounts owing that were reported or created less than 30 days previously and which arose as a result of a third party clearing arrangement entered in to with a Clearing Participant that is a Related/Associated Person of the Market Participant.
Risk-Based Capital Requirements means the requirements set out in Schedule 1A.
Substantial holder means a person who has or would have a substantial holding if Part 6C of the Corporations Act applied to that corporation.
Swap means a transaction in which two counterparties agree to exchange streams of payments over time on a predetermined basis.
Total Risk Requirement means the sum of:
(a)
Operational Risk Requirement;
(b)
Counterparty Risk Requirement;
(c)
Large Exposure Risk Requirement;
(d)
Position Risk Requirement;
(e)
Underwriting Risk Requirement; and
(f)
Non-Standard Risk Requirement,
however where an asset or liability is an Excluded Asset or Excluded Liability a risk requirement otherwise applicable under paragraphs (a) to (e) is not included.
Underwriting Risk Requirement is the absolute sum of the risk amounts calculated in accordance with Annexure 4 to this Schedule 1A.
Note: There is no penalty for this Rule.

Part 9.1Application of Rules

9.1.1Principal Traders and Clearing Participants

This Chapter does not apply to:
(a)
a Market Participant that is only approved as a Principal Trader; or
(b)
a Market Participant that is a Clearing Participant of an Approved Clearing Facility and complies with the capital requirements under the Clearing Rules.
Note: There is no penalty for this Rule.

Part 9.2 Risk-Based Capital RequirementsReporting

9.2.1ARisk-Based Capital Requirements: Forms

In this Part 9.2:
Ad Hoc Risk-Based Return means a return containing the information in, and in the form set out in, Part 1 of Form 1 in Schedule 1C to these Rules.
Annual Audited Risk-Based Return means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules, except for the section Credit Facilities & Overdraft (coded “CFO”).
Monthly Risk-Based Return means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules.
Risk-Based Return Declaration means a declaration containing the information in, and in the form set out in, Part 2 of Form 2 in Schedule 1C to these Rules.
Summary Risk-Based Return means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules, except for the following sections:
(a)
Underwriting Risk Requirement (coded “URR”);
(b)
Non Standard Risk Requirement (coded “NRR”); and
(c)
Credit Facilities & Overdraft (coded “CFO”).
Note: There is no penalty for this Rule.
9.2.1Risk-Based Capital Requirements—Ad hoc or summary return on request by ASIC
A Market Participant must, if requested to do so by ASIC, provide ASIC with:
(a)
an Ad Hoc Risk-Based Return; or
(b)
a Summary Risk-Based Return and Risk-Based Return Declaration,
authorised by one director or partner of the Market Participant, within the time specified by ASIC in the request.
Maximum penalty: $20,000
9.2.2Core Capital or Liquid Capital below minimum
(1) A Market Participant must notify ASIC immediately if its:
(a)
Core Capital is at any time less than the minimum amount required by paragraph S1A.2.1(b); or
(b)
Liquid Capital divided by its Total Risk Requirement is equal to or falls below 1.2.
(2) A Market Participant must provide ASIC with at the option of ASIC, an Ad Hoc Risk-Based Return, or a Summary Risk-Based Return and Risk-Based Return Declaration, disclosing the amount of its Liquid Margin:
(a)
no later than one Business Day after notifying ASIC under subrule (1); and
(b)
from then on, either:
(i)
by 10 am on the first Business Day of each week, showing the financial position of the Market Participant on the last Business Day of the prior week, for so long as the amount referred to in paragraph (1)(b) is equal to or less than 1.2 but greater than 1.1; and
(ii)
by 10 am on each Business Day, showing the financial position of the Market Participant on the prior Business Day, for so long as the amount referred to in paragraph (1)(b) is 1.1 or less.
(3) The return referred to in subrule (2) must be authorised by one director or partner of the Market Participant.
Maximum penalty: $20,000

9.2.3Monthly Risk-Based Return

A Market Participant must prepare and deliver to ASIC within 10 Business Days of the end of each calendar month, the following documents and information:
(a)
if the Market Participant is not a partnership, a Monthly Risk-Based Return, which accurately reflects the Market Participant’s accounts and financial position on the last Business Day of the previous calendar month;
(b)
if the Market Participant is not a partnership, a Risk-Based Return Declaration relating to the Monthly Risk-Based Return, authorised by one director of the Market Participant;
(c)
if the Market Participant is a partnership, a Monthly Risk-Based Return, which accurately reflects the Market Participant’s accounts and financial position on the last Business Day of the previous calendar month, or such other alternative form of return as ASIC directs under this paragraph; and
(d)
if the Market Participant is a partnership, a Risk-Based Return Declaration relating to the Monthly Risk-Based Return, authorised by one partner of the Market Participant, or such other alternative form of declaration as ASIC directs under this paragraph.
Maximum penalty: $20,000

9.2.4Annual Audited Risk-Based Return

(1) A Market Participant must prepare and deliver to ASIC:
(a)
within three months following the end of the Market Participant’s financial year if the Market Participant is not a partnership; or
(b)
within two months following the end of the Market Participant’s financial year if the Market Participant is a partnership,
the following documents and information:
(c)
the Market Participant’s statutory accounts, including directors’ declaration and audit report as required under the laws of the Market Participant’s home jurisdiction, which give a true and fair view of the financial position and performance of the Market Participant’s business as at the end of the financial year and which are prepared in accordance with accounting standards and principles which are generally accepted in Australia, unless ASIC determines otherwise;
(d)
if the Market Participant is not a partnership, an Annual Audited Risk-Based Return, which accurately reflects the Market Participant’s accounts and its financial position as at the end of the Market Participant’s financial year;
(e)
if the Market Participant is not a partnership, a Risk-Based Return Declaration relating to the Annual Audited Risk-Based Return, authorised by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant;
(f)
if the Market Participant is a partnership, an Annual Audited Risk-Based Return, which accurately reflects the Market Participant’s accounts and its financial position as at the end of the Market Participant’s financial year, or such other alternative form of return as ASIC directs under this paragraph;
(g)
if the Market Participant is a partnership, a Risk-Based Return Declaration relating to the Annual Audited Risk-Based Return, authorised by two partners of the Market Participant, or such other alternative form of declaration as ASIC directs under this paragraph;
(h)
an auditor’s report on the Annual Audited Risk-Based Return or the alternative form of return directed by ASIC under paragraph (f), in the form set out in Form 5 in Schedule 1C to these Rules, dated and signed by the audit firm;
(i)
a statement (the Key Risks and Internal Systems Statement) in the form set out in Form 6 in Schedule 1C to these Rules, dated and signed by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant (the date of the resolution must be specified), or, if the Market Participant is a partnership, by two partners of the Market Participant; and
(j)
the Market Participant’s group structure chart showing the Market Participant’s corporate ownership structure starting at the ultimate parent, dropping down to the immediate parent, the Market Participant, any subsidiaries (including nominee companies of the Market Participant) and any related/associated companies of the Market Participant.
(2) If the financial year end of the Market Participant is other than 30 June, the Market Participant must notify ASIC of its financial year end.
Maximum penalty: $20,000

9.2.5Partnership Statutory Declaration

A Market Participant that is a partnership must give ASIC, within 10 Business Days after the end of June and December each year, for each partner of the Market Participant, a declaration (the Partnership Statutory Declaration) in the form set out in Form 7 in Schedule 1C to these Rules, signed by the partner to which the Partnership Statutory Declaration relates and witnessed in accordance with the instructions included on the Partnership Statutory Declaration.
Maximum penalty: $20,000

Part 9.4General

9.4.1Alternate director

Where a Market Participant has appointed an alternate director in accordance with section 201K of the Corporations Act and the constitution of the Market Participant, the alternate director may authorise or sign the forms referred to in Part 9.2 only if the Market Participant has provided ASIC with:
(a)
the details of the appointment of the alternate director; and
(b)
a statement that the Market Participant’s constitution permits the appointment of the alternate director.
Note: There is no penalty for this Rule.
9.4.2Use of Return Lodgement and Monitoring System
(1) Unless otherwise directed by ASIC, a Market Participant may comply with the following provisions:
(a)
Rule 9.2.1;
(b)
subrule 9.2.2(2);
(c)
Rule 9.2.3;
(d)
paragraphs 9.2.4(1)(d) to (g),
by submitting the information required to be delivered to ASIC under those provisions to the electronic Return Lodgement and Monitoring system maintained by a Market operator.
(2) Where a Risk-Based Return Declaration is submitted to the electronic return lodgement and monitoring system maintained by a Market operator, each reference in that Risk-Based Return Declaration to the ASIC Market Integrity Rules (ASX Market) 2010 is taken to be a reference to these Rules.
Note. 1: Before 26 May 2014, equivalent requirements in these Rules were set out in the ASIC Market Integrity Rules (ASX Market) 2010.
Note 2: There is no penalty for this Rule.

Part 9.5Scope of audits

9.5.1Market Participant to assist auditor

(1) A Market Participant must give its auditor access to its premises and Employees and all records, documents, explanations and other information required by the auditor in respect of any audit conducted under Part 9.2.
(2) A Market Participant must:
(a)
not impose any limitation on the extent of any audit required under Part 9.2; and
(b)
permit and direct the auditor to notify ASIC immediately if any limitation is imposed on the auditor, or if the auditor is hindered or delayed in the performance of the auditor’s duties.
(3) The records of each of the Market Participant’s nominee companies must be included in the audit.
Maximum penalty: $100,000

Schedule 1A:Capital liquidity requirements

Part S1A.1Definitions and interpretation

S1A.1.1Definitions

In this Schedule 1A, unless the context otherwise requires:
Approved Deposit Taking Institution means:
(a)
an authorised deposit taking institution under section 5 of the Banking Act 1959 (Cth);
(b)
a banking institution which has its activities formally regulated in accordance with the standards of the Basel Committee on Banking Supervision; or
(c)
an institution which has been given a risk weighting by the Australian Prudential Regulation Authority equivalent to an authorised deposit taking institution referred to in paragraph (a) above.
Approved Institution means:
(a)
any of the following institutions whose net assets are greater than $30 million at the date of its last published audited balance sheet:
(i)
a life insurance company or general insurance company; or
(ii)
an investment company, trust or other similar institution whose ordinary business is to buy and sell Financial Instruments;
(b)
any body corporate or partnership whose ordinary business is to buy and sell Financial Instruments and which is regulated by a:
(i)
Recognised non-European Union Regulator specified in Table A5.3.1 in Annexure 5 to this Schedule 1A;
(ii)
Recognised European Union Regulator specified in Table A5.3.2 in Annexure 5 to this Schedule 1A; or
(c)
a Fund Manager and an underlying client that has placed money with, or has securities under the control of, the Fund Manager, where:
(i)
the Market Participant has a dealing relationship with the Fund Manager but not the underlying client; and
(ii)
the Fund Manager is placing orders on behalf of the underlying client and not as principal,
provided that the Market Participant maintains adequate documentation in support of paragraphs (a), (b) or (c).
Approved Subordinated Debt means an amount owing by a Market Participant under a subordination arrangement which is approved by ASIC under Rule S1A.2.4.
Approved Subordinated Loan Deed means, in respect of a subordination arrangement, a deed which:
(a)
is executed:
(i)
by the lender and ASIC under seal or by such equivalent method expressly recognised under the Corporations Act;
(ii)
in the case of a Market Participant which is a company, by the Market Participant under seal or by such equivalent method expressly recognised under the Corporations Act; and
(iii)
in the case of a Market Participant which is a partnership, by each of its partners;
(b)
sets out details of the terms governing any subordinated debt regulated by the subordination arrangement or identifies the document which does so;
(c)
contains those provisions required by ASIC including without limitation, provisions to the effect that:
(i)
alterations to the subordinated loan deed or the terms or details of any subordinated debt regulated by the subordination arrangement cannot be made unless the agreement of all parties is obtained and the variation is executed in the manner required under paragraph (a);
(ii)
ASIC must be satisfied that the Market Participant has made adequate arrangements to ensure that Schedule 1A will be complied with and will continue to be complied with upon the maturity date of any loan for a fixed term;
(iii)
ASIC must be given full particulars of any debt to be regulated by the subordination arrangement under the subordinated loan deed prior to such debt being created; and
(iv)
prior to the Bankruptcy of the Market Participant, repayment of any subordinated debt regulated by the subordination arrangement can only occur in accordance with subrules S1A.2.4(6) and (7); and
(d)
contains specific acknowledgment by the lender of the matters set out in paragraphs S1A.2.4(2)(a) and (b).
ASX 24 Market has the meaning given in the ASIC Market Integrity Rules (Futures Markets) 2017.ASX Clear means ASX Clear Pty Limited (ACN 001 314 503).
ASX Clear Operating Rules means the operating rules of ASX Clear.
ASX Settlement means ASX Settlement Pty Limited (ACN 008 504 532).
ASX Settlement Operating Rules means the operating rules of ASX Settlement.
Bankruptcy means in respect of an entity:
(a)
the entity becomes an externally administered body corporate within the meaning of the Corporations Act;
(b)
the entity becomes an individual who is an insolvent under administration within the meaning of the Corporations Act;
(c)
if the entity is a partnership, the entity is wound up or dissolved or a liquidator is appointed to it;
(d)
a person takes control of the entity’s property for the benefit of the entity’s creditors because the entity is, or is likely to become, insolvent;
(e)
the entity enters into an arrangement, composition or compromise with, or assignment for the benefit of, all of its creditors or any class of them; or
(f)
anything analogous to, or having a substantially similar effect to the events specified in paragraphs (a) to (e) happens to the entity under the laws of any applicable jurisdiction.
CFD means contract for difference.
Classical ETF means a managed fund that meets all of the following criteria:
(a)
that is listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act);
(b)
where, under an open prospectus, the units in the fund can only be subscribed for and redeemed in kind, on demand and via the exchange of a defined basket of Equity securities;
(c)
that has a “passive” investment strategy designed to replicate a stock index at all times and this is evidenced by the holding of physical securities in weightings that predominantly match the stock index the fund has been issued over, and accordingly, any cash or Derivative components must be immaterial and must not be used to gear the fund;

(d)
where the underlying assets are known on a daily basis; and
(e)
that is subscribed for and redeemed in a “primary” market via either a Market Participant or the fund issuer, and existing units are traded in a “secondary” market provided through a stock exchange.

Client Balance means an individual Counterparty’s net debit or credit balance with a Market Participant arising from non-margined Financial Instruments.

Core Capital means:

(a)
in the case of a Market Participant which is a company, the sum of:
(i)
all ordinary issued shares to the extent that those shares are paid-up;
(ii)
all non cumulative Preference Shares;
(iii)
all reserves, excluding revaluation reserves other than Financial Asset Revaluation Reserves; and
(iv)
opening retained profits/losses adjusted for all current year movements; and
(b)
in the case of a Market Participant which is a partnership, the sum of the partners’ current and capital accounts.

Counterparty means in respect of a transaction to which a Market Participant is a party, another party to that transaction whether that person is a counterparty or a client.

Counterparty Risk Requirement means the greater of:

(a)
zero; and
(b)
the absolute sum of the counterparty risk amounts calculated in accordance with Annexure 1 to this Schedule 1A less any provision raised for doubtful debts.
Note: The provision for doubtful debts must relate to a specific Counterparty receivable for which a counterparty risk amount has been calculated in accordance with Annexure 1 or to cover the possibility of a Counterparty or Client Balance becoming doubtful. A Market Participant must not deduct a provision amount from an individual counterparty risk amount.

Debt Derivative includes:

(a)
a convertible note (except to the extent that Annexure 3 to this Schedule 1A provides for the treatment of a convertible note as an equity position);
(b)
an interest rate Swap;
(c)
a Forward Rate Agreement;
(d)
a forward contract over a Debt Instrument;
(e)
a Future over a Debt Instrument and a Future over an index or basket product based on Debt Instruments;
(f)
an index or basket product based on Debt Instruments; and
(g)
an Option over a Debt Instrument and an Option over any of the products referred to in paragraphs (a) to (f),

but does not include an instrument that falls within the definition of Equity Derivative or Foreign Exchange Derivative.

Debt Equivalent means the value of a position in a Debt Derivative that is equivalent to the value had it been a physical position in the underlying Debt Instrument calculated in accordance with Part A3.16 of Annexure 3 to this Schedule 1A.

Debt Instrument includes:

(a)
a debt security without call or put provisions;
(b)
a discount security without call or put provisions;
(c)
a non-convertible preference share;
(d)
a redeemable preference share with a fixed and certain date for redemption; and
(e)
an interest in a managed investment scheme investing only in Debt Instruments, mortgages or cash, including an interest in a Hybrid ETF or Other Managed Fund that is issued over physical Debt Instruments only (ignoring any immaterial percentage of cash or Derivatives also included in the Hybrid ETF or Other Managed Fund and used only for hedging purposes),

but does not include an instrument that falls within the definition of Equity.

Debt Net Position means an amount calculated in accordance with Part A3.17 of Annexure 3 to this Schedule 1A.

Derivative includes:

(a)
an Equity Derivative;
(b)
a Debt Derivative; and
(c)
a Foreign Exchange Derivative,

but does not include an instrument that falls within the definition of Equity or Debt Instrument.

Equity includes:

(a)
a share other than a share referred to in paragraphs (c) and (d) of the definition of Debt Instrument;
(b)
a depository receipt;
(c)
an instalment receipt;
(d)
an interest in a managed investment scheme, including an interest in a Hybrid ETF or an Other Managed Fund that is issued over:
(i)
physical Equities only;
(ii)
physical Debt Instruments and property;
(iii)
physical Equities, physical Debt Instruments and property;
(iv)
physical Equities and property; or
(v)
physical property only,
(ignoring any immaterial percentage of cash or Derivatives also included in the Hybrid ETF or Other Managed Fund and used only for hedging purposes), other than an interest referred to in paragraph (e) of the definition of Debt Instrument,

but does not include an instrument that falls within the definition of Debt Instrument.

Equity Derivative includes:

(a)
an equity Swap;
(b)
a forward contract over an Equity;
(c)
a Future over an Equity and a Future over a basket or index product based on Equities;
(d)
an index or basket product based on Equities (including a Classical ETF);
(e)
a renounceable or non-renounceable right to subscribe for an equity;
(f)
an Option over an Equity (whether issued or unissued) and an Option over any of the products referred to in paragraphs (a) to (d); and
(g)
an exchange traded CFD over:
(i)
an Equity; or
(ii)
a basket or index product based on Equities,

but does not include an instrument that falls within the definition of Debt Derivative or Foreign Exchange Derivative.

Equity Equivalent means the value of a position calculated in accordance with Part A3.8 of Annexure 3 to this Schedule 1A.

Equity Net Position means an amount calculated in accordance with Part A3.9 of Annexure 3 to this Schedule 1A.

Excluded Asset means:

(a)
a fixed asset;
(b)
an intangible asset;
(c)
a future income tax benefit;
(d)
a non current asset;
(e)
a deposit with or loan to a person other than:
(i)
a deposit or loan with an Approved Deposit Taking Institution;
(ii)
a deposit or loan to the extent the balance is secured by collateral which is Liquid, evidenced in writing and valued at the mark-to-market value; or
(iii)
a deposit of funds as a margin or deposit with a person licensed to trade or clear Futures or Options to the extent that those funds relate to an open position;
(f)
a deposit with a third party clearing organisation;
(g)
a Related/Associated Person Balance to the extent the balance is not secured by collateral which is:
(i)
Liquid;
(ii)
under the control of the Market Participant, able to be accessed by the Market Participant without the approval of a third party and not otherwise encumbered;
(iii)
evidenced in writing by a legally binding agreement between the Market Participant and the Related/Associated Person in circumstances where the Market Participant has established that the Related/Associated Person and the persons signing the agreement have the legal capacity to enter into the agreement and provide the nominated collateral; and
(iv)
valued at the mark-to-market value;
(h)
a debt which was reported or created more than 30 days previously, other than a debt:
(i)
from another Market Participant that is not an Related/Associated Person; or
(ii)
which is secured by collateral which is Liquid, evidenced in writing and valued at the mark-to-market value;
(i)
a prepayment (being an expense which has been paid during one accounting period for a term which extends beyond the end of that period) which is not Liquid or which is Liquid but has been made in respect of an item of expenditure that is specifically required to be made by the Market Participant for the Market Participant to comply with the requirements of these Rules or the operating rules of a Market;
(j)
an asset which is not Liquid; or
(k)
an asset which is Liquid but which has a charge against it (in whole or in part) where the purpose of the charge is to raise funds for use outside the ordinary course of the Market Participant’s securities or derivatives business.

Excluded Liability means the maximum liability specified in a guarantee or indemnity under paragraph S1A.2.6(1)(c).

Family Trust means a trust in which:

(a)
the person or the Immediate Family of the person is the sole or majority beneficiary; or
(b)
the person has the ability to remove the trustee of the trust and replace the trustee with his or her own nominee.

Financial Asset Revaluation Reserves means revaluation reserves relating to available for sale financial assets as defined in accordance with accounting standards which are generally accepted in Australia or other accounting standards approved by ASIC under subrule S1A.2.7(3).

Financial Instrument means:

(a)
an Equity;
(b)
a Debt Instrument; and
(c)
a Derivative.

Foreign Exchange Derivative includes:

(a)
a forward contract over foreign currency;
(b)
a Future over foreign currency;
(c)
an Option over foreign currency; and
(d)
an exchange traded CFD over an exchange rate or foreign currency,

but does not include an instrument that meets the definition of Equity Derivative or Debt Derivative.

Foreign Exchange Equivalent means the value of a position calculated in accordance with Part A3.21 of Annexure 3 to this Schedule 1A.

Forward Rate Agreement means an agreement in which two parties agree that:

(a)
one party will make payments to the other of an amount of interest based on an agreed interest rate for a specified period from a specified date applied to an agreed principal amount;
(b)
no commitment is made by either party to lend or borrow the principal amount; and
(c)
the exposure is limited to the interest difference between the agreed and actual market rates at settlement.

Free Delivery means a trade where delivery of the Financial Instrument is made to a client or Counterparty without receiving payment or where a payment is made without receiving a Financial Instrument, regardless of whether the client or Counterparty is issuer sponsored or participant sponsored.

Fund Manager means any licensed responsible entity, agent of a responsible entity, trustee or manager whose ordinary business it is to buy or sell Financial Instruments and make investment decisions on behalf of an independent third party.

Future means a contract which is traded on an exchange, subject to a Primary Margin Requirement and which is:

(a)
a contract to make an adjustment between the parties on an agreed future date as to the value on that date of an interest rate, a foreign currency, an Equity, basket or index, or some other agreed factor; or
(b)
a deliverable bond futures contract or deliverable share futures contract.

Government Debt Instrument means any form of government financial instrument including a bond, treasury note or other short term instrument, and a Debt Derivative of any of those instruments where:

(a)
it is issued by, fully guaranteed by, or fully collateralised by a Debt Instrument issued by:
(i)
the Australian Commonwealth, State (including Territory) governments; or
(ii)
a central government or central bank within the OECD;
(b)
it is issued by, or fully guaranteed by, a non-OECD country central government or central bank, has a residual maturity of one year or less and is denominated in local currency and funded by liabilities in the same currency.

Group of Connected Persons means two or more persons or entities where:

(a)
each person or entity is a Related/Associated Person of each other person or entity; or
(b)
the persons who have control of the management of each entity or have been appointed as directors of each entity are substantially the same.

Hybrid ETF means a managed fund:

(a)
that is listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act); and
(b)
where, under an open prospectus, the units can only be subscribed for and redeemed in cash or in kind; and
(c)
that is subscribed for and redeemed in a “primary” market and existing units are traded in a “secondary” market; or
(d)
that does not satisfy all of the requirements of a Classical ETF but satisfies the three criteria referred to in paragraphs (a), (b) and (c).

Immediate Family in relation to a person means that person’s spouse and any non-adult children.

In the Money means:

(a)
in relation to call Options, that the current market price of the underlying instrument is greater than the exercise price; and
(b)
in relation to put Options, that the current market price of the underlying instrument is less than the exercise price.

Large Exposure Risk Requirement is the absolute sum of a Market Participant’s:

(a)
counterparty large exposure risk amount calculated in accordance with Annexure 2 to this Schedule 1A; and
(b)
issuer large exposure risk amount calculated in accordance with Annexure 2 to this Schedule 1A.

Liquid means realisable or otherwise convertible to cash within 30 days and in the case of a Financial Instrument, means the Financial Instrument meets the following criteria:

(a)
there are genuine independent offers from third parties to the Market Participant;
(b)
prices or rates exist that closely approximate the last sale price or rate in the Financial Instrument (whether exchange traded or over-the-counter);
(c)
payment/settlement can be effected within the settlement conventions applicable to the Financial Instrument; and
(d)
there is sufficient liquidity in the market to ensure a ready sale of the position held.

Liquid Capital means the sum of:

(a)
Core Capital;
(b)
cumulative Preference Shares;
(c)
Approved Subordinated Debt; and
(d)
revaluation reserves other than Financial Asset Revaluation Reserves,

less the sum of:

(a)
Excluded Assets; and
(b)
Excluded Liabilities.

Liquid Margin means the amount calculated by deducting the Total Risk Requirement amount from the amount of Liquid Capital.

Market Spot Exchange Rate means the closing rate of exchange for foreign currencies against Australian dollars on each Business Day, having a settlement period of two days.

Non-Standard Risk Requirement means the amount calculated in accordance with Rule S1A.2.9 to cover unusual or non-standard exposures.

OECD means the Organisation for Economic Co-operation and Development.

Operational Risk Requirement means the amount calculated in accordance with subrule S1A.2.3(1) which is required to cover exposures associated with commencing and remaining in business arising separately from exposures covered by other risk requirements.

Option means a contract which gives the holder the option or right, exercisable at or before a specified time to:

(a)
buy (whether by way of issue or transfer) or sell a quantity of a Financial Instrument or a foreign currency; or
(b)
be paid an amount of money calculated by reference to the value of a Financial Instrument, foreign currency or index as specified in the contract.

OTC Derivative means a Derivative which is not traded on an exchange.

Other Managed Fund means a managed fund:

(a)
that is not listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act); or
(b)
that is listed and quoted on a stock exchange but does not satisfy all of the requirements of a Classical ETF or Hybrid ETF.

Position Risk Factors are the percentages applied to principal positions as specified in Tables A5.1.1, A5.1.2, A5.1.3 and A5.1.7 of Annexure 5 to this Schedule 1A.

Position Risk Requirement is the absolute sum of the position risk amounts for a Market Participant’s:

(a)
Equity and Equity Derivative positions calculated in accordance with Parts A3.1 to A3.9 of Annexure 3 to this Schedule 1A;
(b)
Debt Instrument and Debt Derivative positions calculated in accordance with Parts A3.10 to A3.17 of Annexure 3 to this Schedule 1A; and
(c)
foreign exchange and Foreign Exchange Derivative positions calculated in accordance with Parts A3.18 to A3.22 of Annexure 3 to this Schedule 1A.

Positive Credit Exposure means an exposure to a Counterparty such that if the Counterparty were to default on its obligations under:

(a)
an individual transaction; or
(b)
to the extent allowed by Schedule 1A, a group of transactions, contracts, arrangements or agreements,

the Market Participant may incur a financial loss.

Preference Share means a preference share that is redeemable solely at the request of the Market Participant.

Primary Margin Requirement means the amount which a Market Participant lodges or is notionally required to lodge as a deposit to cover potential daily worse case price movements in the relevant market, lodged in accordance with the rules of an exchange or clearing house against open positions registered in the name of the Market Participant on the exchange or clearing house.

Qualifying Debt Instruments means Debt Instruments that are:

(a)
rated investment grade by at least two of the credit rating agencies recognised by the Australian Prudential Regulation Authority and specified in Table A5.1.5 in Annexure 5 to this Schedule 1A;
(b)
rated investment grade by one credit rating agency recognised by the Australian Prudential Regulation Authority and specified in Table A5.1.5 in Annexure 5 to this Schedule 1A, and the issuer has its ordinary shares included in a Recognised Market Index;
(c)
unrated but the issuer of the Debt Instrument has its ordinary shares included in a Recognised Market Index and the Debt Instruments are reasonably deemed by the Market Participant to be of comparable investment quality to one or more of the categories of Qualifying Debt Instrument as described in this definition;
(d)
issued by, or guaranteed by, Australian local governments and Australian public sector entities other than those which have corporate status or operate on a commercial basis;
(e)
issued by, or fully guaranteed by, a non-OECD country’s central government and central bank and which have a residual maturity of over one year and are denominated in local currency and funded by liabilities in the same currency;
(f)
issued by or collateralised by claims on, an international agency or regional development bank including the International Monetary Fund, the International Bank for Reconstruction and Development, the Bank for International Settlements and the Asian Development Bank;
(g)
issued, guaranteed, first endorsed or accepted by an Australian ADI or a bank incorporated within the OECD or a non-OECD bank accorded the same credit risk weight as an OECD bank by the Australian Prudential Regulation Authority provided that such instruments do not qualify as capital of the issuing institution;
(h)
issued, guaranteed, endorsed or accepted by a non-OECD bank and which have a residual maturity of one year or less provided that such instruments do not qualify as capital of the issuing institution; or
(i)
issued by or guaranteed by OECD country, State and regional governments and OECD public sector entities.

Recognised Market Index means an index specified in Table A5.1.6 in Annexure 5 to this Schedule 1A.

Related/Associated Person means:

(a)
a partner, director, employee, officer or consultant of a Market Participant or of a company which is a partner of a Market Participant;
(b)
a person who is a member of the Immediate Family of a person referred to in paragraph (a);
(c)
the trustee of a Family Trust of a person referred to in paragraph (a);
(d)
an entity which is:
(i)
controlled by a person referred to in paragraphs (a), (b) or (c) or any of those persons acting together; or
(ii)
a corporation in which a person referred to in paragraphs (a) or (b) is beneficially entitled to more than 50% of the issued capital;
(e)
an entity which is the holding company, or which is controlled by the holding company, of a Market Participant or of a company which is a partner of a Market Participant;
(f)
a person who is a Substantial holder of a Market Participant or of a company which is a partner of a Market Participant;
(g)
an associate of a Market Participant (as defined in each section of Part 1.2, Division 2 of the Corporations Act) or of a company which is a partner of a Market Participant; and
(h)
a lender who is a party to an Approved Subordinated Loan Deed or a related entity or associate of that lender.

Related/Associated Person Balance is an amount owing to the Market Participant by a person who is a Related/Associated Person of the Market Participant and excludes an amount owing as a result of:

(a)
the deposit with, loans to or other amounts owing from an Approved Deposit Taking Institution;

Option 1: > $10,000 and counterparty exposure ≤ 15% of value received: 8% of counterparty exposure

> $10,000 and counterparty exposure > 15% of value received: 8% of 15% of value received

> $10,000 and counterparty exposure > 15% of value received: 100% of counterparty exposure over 15% of value received

Option 2: > $10,000: 100% of counterparty exposure

Sub Total – Unweighted Amounts

Total Risk Amounts – Weighted by CRW

Capital Liquidity Return

Return Date:

Margined Financial Instruments Method

CRR-MFI

Risk Amounts By Counterparty Risk Weighting (CRW) Category

Transaction Type	0%	10%	20%	50%	100%	Total
Settlement Amount, Premium, Deposit or Margin owed by Counterparty @ 100%
Total Risk Amounts Weighted by CRW
Amount of Collateral Utilised To Reduce The Above Amounts

Capital Liquidity Return

Return Date:

OTC Derivatives and Warrants Executed as Principal Method

CRR-ODW

Risk Amounts By Counterparty Risk Weighting (CRW) Category

Transaction Type	0%	10%	20%	50%	100%	Total
Written Premium Not Received @ 100%
Current Credit Exposure: Equity @ 8%
Potential Credit Exposure: Equity @ 8%
Current Credit Exposure: Debt @ 8%
Potential Credit Exposure: Debt @ 8%
Current Credit Exposure: FX @ 8%
Potential Credit Exposure: FX @ 8%
Sub Total – Unweighted Amounts
Total Risk Amounts – Weighted by CRW
Amount Of Collateral Utilised To Reduce The Above Amounts

Capital Liquidity Return

Return Date:

Sub-Underwritten Positions Method

CRR-SUP

Risk Amounts By Counterparty Risk Weighting (CRW) Category

Transaction Type	0%	10%	20%	50%	100%	Total
Unweighted Amount
Total Risk Amounts – Weighted by CRW
Amount of Collateral Utilised To Reduce The Above Amounts

Capital Liquidity Return

Return Date:

CRR-CUR

Currency Exposure

Currency	% of Total
TOTAL

Capital Liquidity Return

Return Date:

Counterparty Concentration

CRR-CCN

Counterparty Name	Counterparty Type	Gross ‘Unweighted Value’	Counterparty Risk Weighting %	Counterparty Risk Amount (Risk Weighted)
1

Capital Liquidity Return

Return Date:

PRR

Position Risk Requirement

Summary	Total
Part 1 – Equity Position Risk
Part 2 – Debt Position Risk
Part 3 – Foreign Exchange Position Risk
Part 4 – VaR
TOTAL POSITION RISK REQUIREMENT

Capital Liquidity Return

Return Date:

PRR-EPR

Equity Position Risk

Summary	Total AUD
Standard Method
Building Block Method
Contingent Loss Matrix Method – Method 1
Contingent Loss Matrix Method – Method 2
Margin Method
Basic Method
Arbitrage Method – Similar Indexes
Arbitrage Method – Matching Basket – 2nd Method
EQUITY POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-EPR-STD

Standard Method

Country	Equity Net Positions @ 8%	Equity Net Positions @ 12%	Equity Net Positions @ 16%	Total Position Risk Amount $
TOTAL
TOTAL STANDARD METHOD POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-EPR-BBL

Building Block Method

Number of Positions		Specific Risk				General Risk
Country	Long	Short	Equity Net Position 2%	Equity Net Position 4%	Equity Net Position 8%	Specific Risk Total $	Aggregate Equity Net 8%	Total Position
								Risk Amount $
TOTAL
TOTAL BUILDING BLOCK METHOD POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-EPR-CM1

Contingent Loss Matrix Method 1

Country	Total Position Risk Amount (Aggregate Of Greatest Losses)
Total

Capital Liquidity Return

Return Date:

PRR-EPR-CM2

Contingent Loss Matrix – Method 2

Number of Positions		Specific Risk				General Risk
Country	Long	Short	Equity Net Positions	Equity Net Positions	Equity Net Positions	Total Specific Risk Amount	Amount Aggregate Of Greatest Losses	Total Position Risk Amount
@ 2 %	@ 4 %	@ 8 %	$	$	$
TOTAL
TOTAL METHOD 2 POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-EPR-MRG

Margin Method

Country	Primary Margin Requirement	Position Risk Amount $ (4 x Primary Margin Requirement)
TOTAL
TOTAL POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-EPR-BSC

Basic Method

Purchased Options			Written Options
Country	Aggregate Mark-To-Market Value of Underlying	Mark-To-Market Value of Options	Position Risk Amount	Position Risk Amount
TOTAL
TOTAL POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-EPR-ARB

Arbitrage Method

Similar Indexes		Broadly based Index and a matching basket
Mark-To-Market Value of Futures	Position Risk Amount @ 2%	No. of Separately Managed Arbitrage Positions	Beta		Min Index Weight	Mark-To-Market Value of Futures	Position Risk Amount @ 2%
Country	$	$	Min %	Max %	%	$	$
TOTAL
TOTAL POSITION RISK		TOTAL POSITION RISK

Capital Liquidity Return

Return Date:

PRR-EPR-PRC

Equity Principal Concentration

Security Code (or description if code not applicable)

Country

Equity Net Position
(Liquid)

Equity Net Position
(Illiquid)

Total Position

Capital Liquidity Return

Return Date:

PRR-DPR

Debt Position Risk

Summary	Position Risk Amounts Total
Standard Method
Building Block Method – Maturity Method
– Duration Method
– Specific Risk
Contingent Loss Matrix Method 2 – Maturity Method – General risk
– Specific risk
– Volatility risk
Margin Method
Basic Method
DEBT POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-STD

Standard Method

Total Position Risk Amount

Capital Liquidity Return

Return Date:

PRR-DPR-BBL

Building Block Method

Building Block Method – Specific Risk

Aggregate Debt Net Positions Absolute Value			(input GROSS numbers)
Government	Qualifying 0–6 Months Residual Maturity	Qualifying 6–24 Months Residual Maturity	Qualifying > 24 Months Residual Maturity	Other	Specific Risk Position Risk Amount
Underlying Currency	@ 0%	@ 0.25%	@ 1.00%	@ 1.60%%	@ 8%	$
TOTAL
TOTAL SPECIFIC RISK POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-BBL-DUR

Duration Method

Weighted Debt Net Positions
Zone 1		Zone 2		Zone 3		Net	Time	Zone Amount	Adjacent Zone	Non Adjacent	General Risk
Underlying Currency	Long	Short	Long	Short	Long	Short	Position Amount	Band Amount	Amount	Zone Amount	Amount
TOTAL
TOTAL GENERAL RISK POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-BBL-MAT

Maturity Method

Weighted Debt Net Positions
Zone 1		Zone 2		Zone 3		Net	Time	Zone Amount	Adjacent Zone	Non Adjacent	General Risk
Underlying Currency	Long	Short	Long	Short	Long	Short	Position Amount	Band Amount	Amount	Zone Amount	Amount
TOTAL
TOTAL GENERAL RISK POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-CM2-GEN

Contingent Loss Matrix Method – General Risk

Underlying

Notional Weighted Debt Net Positions

Net

Position

Time

Band

Zone

Amount

Adjacent

Zone

Non
Adjacent
Zone

General

Risk

Zone 1

Zone 2

Zone 3

Currency

Long

Short

Long

Short

Long

Short

Amount

$

TOTAL

TOTAL GENERAL RISK POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-CM2-SPE

Contingent Loss Matrix Method 2 – Specific Risk

Aggregate Delta weighted value of Underlying Instrument (input GROSS numbers)
Government		Qualifying 0–6 Residual Maturity	Qualifying 6–24 Residual Maturity	Qualifying > 24 Residual Maturity	Other	Specific Risk Position Risk Amount
Underlying Currency	@ 0%	@ 0.25%	@ 1.00%	@ 1.6%	@ 8%	$
TOTAL
TOTAL SPECIFIC RISK POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-CM2-VOL

Contingent Loss Matrix Method 2 – Volatility Risk

Underlying Currency	Absolute Value of the aggregate of the greatest loss for each currency
TOTAL

Capital Liquidity Return

Return Date:

PRR-DPR-MRG

Margin Method

Underlying Currency	Primary Margin Requirement	Position Risk Amount $ (4 x Primary Margin Requirement)
TOTAL
TOTAL POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-BSC

Basic Method

Purchased Options		Written Options
Underlying Currency	Aggregate Mark-To-Market Value of Underlying	Mark-To-Market Value of Options	Position Risk Amount	Position Risk Amount
TOTAL
TOTAL POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-DPR-PRC

Debt Principal Concentration

Security Code (or description if code not applicable)

Underlying Currency

Debt Net Position
(Liquid)

Debt Net Position
(Illiquid)

Total Position

Capital Liquidity Return

Return Date:

PRR-FPR

Foreign Exchange Position Risk

Summary	Position Risk Amounts Total
Standard Method
Contingent Loss Matrix Method
FOREIGN EXCHANGE POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-FPR-STD

Standard Method

Underlying Currency	Net Open Long Position	Net Open Short Position
TOTAL
POSITION RISK AMOUNT – 8% OF MAX OF LONG OR SHORT

Capital Liquidity Return

Return Date:

PRR-FPR-CM1

Contingent Loss Matrix Method

Commodity Currency
Terms Currency	Other	Total
Other
Total
TOTAL POSITION RISK AMOUNT

Capital Liquidity Return

Return Date:

PRR-VAR-LDL

Largest Daily Losses

LossDate

Capital Liquidity Return

Return Date:

PRR-VAR-EST

Equity Stress Testing

Capital Liquidity Return

Return Date:

PRR-VAR-DST

Debt Stress Testing

Change in Yield (%)
Cash	90 days	180 days	1 year	3 years	5 years	10 years	15 years
Yield curve scenario 1	+20	+20	+20	+20	+20	+20	+20	+20
Yield curve scenario 2	−20	−20	−20	−20	−20	−20	−20	−20

Yield curve scenarios

Yield curve scenario 1

Yield curve scenario 2

Interest rate volatility scenarios

Volatility scenario 1	Volatility scenario 2
Change in Implied Volatility (%)	+250	−75

Capital Liquidity Return

Return Date:

PRR-VAR-FST

Foreign Exchange Stress Testing

Exchange Rate Scenarios

Change in Price (%)
Change in Implied Volatility (%)	−20	−10	0	+10	+20
+100
0
−50

Capital Liquidity Return

Return Date:

LRR

Large Exposure Risk Requirement

Summary	Total
Part 1 – Counterparty Large Exposure Amount
Part 2 – Issuer Large Exposure – Equity Method
Part 3 – Issuer Large Exposure – Debt Method
Part 4 – Issuer Large Exposure – Equity & Debt Method
Total Large Exposure Risk Requirement

Capital Liquidity Return

Return Date:

LRR-CLE

Counterparty Large Exposure Amount

Counterparty Large Exposure

Summary	Total
Total Counterparty Large Exposure Risk Requirement
Total number of counterparties

Capital Liquidity Return

Return Date:

LRR-CLE-NMI

Non Margined Financial Instruments Method

Transaction Type	Risk Amounts
> 10 Business Days: Transactions @ 3% of contract value or excess, whichever is greater
> 10 Business Days: 100% of contract value/100% of market value
Sub TOTAL RISK AMOUNT
Total Number of Counterparties

Capital Liquidity Return

Return Date:

LRR-CLE-SLB

Securities Lending and Borrowing Method

Transaction Type	Risk Amounts
Option 1
> $10,000 and counterparty exposure ≤ 15% of value received: 8% of counterparty exposure
> $10,000 and counterparty exposure > 15% of value received: 8% of 15% of value received
> $10,000 and counterparty exposure > 15% of value received: 100% of counterparty exposure over 15% of the value received
Option 2
> $10,000: 100% of counterparty exposure
Sub TOTAL RISK AMOUNT
Total Number of Counterparties

Capital Liquidity Return

Return Date:

LRR-CLE-MFI

Margined Financial Instruments Method

Transaction Type	Risk Amounts
Settlement Amount, Premium, Deposit or Margin owed by Counterparty @ 100%
Sub TOTAL RISK AMOUNT
Total Number of Counterparties

Capital Liquidity Return

Return Date:

LRR-CLE-ODW

OTC Derivatives and Warrants Executed as Principal Method

Transaction Type	Risk Amount
Written Premium Not Received @ 100%
Current Credit Exposure: Equity @ 8%
Potential Credit Exposure: Equity @ 8%
Current Credit Exposure: Debt @ 8%
Potential Credit Exposure: Debt @ 8%
Current Credit Exposure: FX @ 8%
Potential Credit Exposure: FX @ 8%
Sub TOTAL RISK AMOUNT
Total Number of Counterparties

Capital Liquidity Return

Return Date:

LRR-ISE

Issuer Large Exposure – Equity Method

Country	Number of Equity Issuers	Equity Net Position	> 25% Of Liquid Capital @ 12%	> 25% Of Liquid Capital @ 16%	> 5% Of Issue @ 12%	> 5% Of Issue @ 16%	Total Risk
							Amount $
							TOTAL

Capital Liquidity Return

Return Date:

LRR-ISD

Issuer Large Exposure – Debt Method

Underlying Currency	Number of Debt Issuers	Debt Net Position	> 25% Of Liquid Capital	> 10% Of Issue	Total Risk Amount $
					TOTAL

Capital Liquidity Return

Return Date:

LRR-IED

Issuer Large Exposure – Equity & Debt Method

Underlying Currency	Number of Equity/Debt Issuers	Equity Net Position Plus Debt Net Position	> 25% Of Liquid Capital @ 12%	> 25% Of Liquid Capital @ 16%	> 25% Of Liquid Capital @ applicable debt position risk factor	Total Risk Amount $
TOTAL

Capital Liquidity Return

Return Date:

URR

Underwriting Risk Requirement

Equity	Debt Instrument	Total
Underwriting Risk Amount

Capital Liquidity Return

Return Date:

NRR

Non Standard Risk Requirement

Detail the nature of the exposure	Other	Amount – Total
Total

Capital Liquidity Return

Return Date:

ORR

Operational Risk Requirement

Minimum Amount	$100,000
add Variable amount
Counterparty risk requirement	(a)
Position Risk Requirement	(b)
Underwriting Risk Requirement	(c)
Sum (a) + (b) + (c)		* 8% =
add Secondary Requirement
Total Operational Risk

Capital Liquidity Return

Return Date:

ICS

Income Statement

Revenue

Current		Prior
Profits (Losses) from trading in securities/ derivatives: Realised
Unrealised
Brokerage: Equities
Warrants
Futures/Exchange Traded Options
Debt
Other
Underwriting commission (less sub-underwriting commission paid)
Sub-underwriting commission
Dividends
Interest
Bad debts recovered and provision for doubtful debts no longer required
Directors’ fees
Handling fees
Corporate Advisory Fees
Financial planning/Portfolio Management Fees
Management fees
Other fee received from associated entities
Other Revenue

Capital Liquidity Return

Return Date:

Additional Total

TOTAL REVENUE

Capital Liquidity Return

Return Date:

Expenses

Current				Prior
Salaries (excluding partners, directors and research salaries)
Directors’/Partners’ salaries
Commissions paid to Traders/Consultants
Other salary costs
Occupancy costs
Interest paid
Travel, Public Relations and Advertising
Research (including research salaries)
Bad and doubtful debts written off/provided for
Audit fees
Admin costs (postage, fax, phone etc)
Professional indemnity insurance
Other insurance costs
All management/service fees paid to associated entities
Depreciation/Amortisation of fixed and intangible assets
Finance lease payments
Operating lease payments (other than occupancy)
Other Expenses
TOTAL EXPENSES

Capital Liquidity Return

Return Date:

Net Profit/(loss)

Current		Prior
PROFIT before income TAX
Income Tax – Expense
If a profit has been made but no tax provision raised, the reason for NOT providing for tax must be recorded in this comment field
Profit/(loss) after TAX from discontinued operations (detail below)
NET PROFIT/(LOSS) for the period

Capital Liquidity Return

Return Date:

Retained Earnings

Current		Prior
Opening Retained Earnings
Adjustments TO retained earnings (detail) – increases
TOTAL
Dividends
Adjustments from retained earnings (detail) – decreases
TOTAL
Other adjustments to/(from) retained earnings (detail)
TOTAL
Closing Retained Earnings

Capital Liquidity Return

Return Date:

BAL

Balance Sheet

Assets
Current Assets (current)		Current Assets (prior)
Trade Receivables
Less Provision for doubtful debts
Securities Borrowings
Financial Assets
Cash and Cash Equivalents
Related/Associated Persons
Client segregated/Trust Accounts
Deposits at Clearing Houses
Other Current Assets
TOTAL CURRENT ASSETS
Non Current Assets (current)		Non Current Assets (prior)
Trade Receivables
Financial Assets
Loans and Deposits
Related/Associated Persons
Property, Plant & Equipment
Intangible Assets
Deferred Tax Assets
Other Non Current Assets
TOTAL NON CURRENT ASSETS
Total Assets

Capital Liquidity Return

Return Date:

Liabilities
Current Liabilities (current)	Current Liabilities (prior)
Trade Payables
Securities Lending
Financial Liabilities
Short Term Borrowings
Income Tax Payable
Approved Subordinated Debt
Other Current Liabilities
TOTAL CURRENT LIABILITIES
Non Current Liabilities (current)	Non Current Liabilities (prior)
Long Term Borrowings
Deferred Income Tax
Approved Subordinated Debt
Other Non Current Liabilities
TOTAL NON CURRENT LIABILITIES
Total Liabilities
Net Assets

Capital Liquidity Return

Return Date:

Equity
Equity (current)		Equity (prior)
Ordinary Issued and Paid Up Shares
Non Cumulative Preference Shares
Cumulative Preference Shares
Other
Total Equity
Reserves (current)		Reserves (prior)
Revaluation reserves
Other reserves
TOTAL RESERVES
Retained Earnings/(Accumulated Losses)
Total Equity

Capital Liquidity Return

Return Date:

BSD

Balance Sheet Details

Total Contingent Liabilities

Capital Liquidity Return

Return Date:

BSD-CCE

Cash & Cash Equivalents

Detail FUNDS lodged with:	CURRENT		NON CURRENT
Approved Deposit Taking Institution (ADTI)	SECURED	UNSECURED	SECURED	UNSECURED
Total ADTI
Petty Cash
Non ADTI and Other
Total NON ADTI and Other
Total Secured/Unsecured
Total Current/Non Current:

Capital Liquidity Return

Return Date:

BSD-RAP

Related/Associated Persons

Cash & Cash Equivalents – Detail	CURRENT		NON CURRENT
-Approved Deposit Taking Institution (ADTI)	SECURED	UNSECURED	SECURED	UNSECURED
ADTI Total
Cash & Cash Equivalents – Detail
-Non ADTI and Other
Non ADTI Total
Total Secured/Unsecured
Total Current/Non Current

Capital Liquidity Return

Return Date:

BSD-UWG

Underwriting/Guarantees

Underwriting and Sub Underwriting:
Gross Underwriting Commitments
Gross Sub Underwriting Commitments
Gross Underwriting and Sub Underwriting Commitments
Reduce underwriting and sub underwriting commitments by sub underwritten amounts and/or amounts received from client placement
NET UNDERWRITING COMMITMENTS
Guarantees:
For the purpose of the Rules
Ordinary course of business
To settle legal proceedings
SUB TOTAL
Related/Associated persons
Other
Other Guarantee Sub Total
TOTAL UNDERWRITING/GUARANTEES

Capital Liquidity Return

Return Date:

BSD-LIE

Legal/Insurance/Encumbrances

Contingent Liabilities

Are there any actual/potential legal proceedings and Insurance Claims?

Is there any charge, pledge, or other encumbrance over any of the assets of the Participant?

Has the Participant granted any Credit Facilities to other persons or entities?

Capital Liquidity Return

Return Date:

BSD-LSO

Other Contingent Liabilities and Lease Commitments

Lease Commitments: (including property commitments)
Detail Operating Leases
Other Leases:
TOTAL LEASE COMMITMENTS:
Other Contingent Liabilities:
TOTAL OTHER:
Total Lease Commitments/Other Contingent Liabilities:

Capital Liquidity Return

Return Date:

BSD-OTA

Other Assets

Current Asset Description	Current Asset Amount
Current Asset Amount Total
NON Current Asset Description	NON Current Asset Amount
NON Current Asset Amount Total
Other Assets Total

Capital Liquidity Return

Return Date:

CAP – CC, LQC, LM

Core Capital

Current ReturnPrior Return
Ordinary Issued and Paid-Up Shares
Non-Cumulative Preference Shares
All Reserves Excluding Revaluation Reserves other than Financial Asset Revaluation Reserves
Opening Retained Earnings/Accumulated Losses Adjusted for all Current Year Movements
Core Capital

Capital Liquidity Return

Return Date:

CAP- CC, LQC, LM

Liquid Capital Calculation

Current Return		Prior Return
Core Capital
Cumulative Preference Shares
Approved Subordinated Debt
Revaluation Reserves other than Financial Asset Revaluation Reserves
less Excluded Assets
Property, Plant and Equipment
Intangible Assets
Deferred Tax Assets
Other Non-Current Assets
Unsecured deposits/loans with non approved deposit taking instit’s
Unsecured non ADTI related/associated person balances
Other trade receivables realisable after 30 days
Prepayments realisable after 30 days
Other Illiquid Assets
Other charged assets
Other prescribed assets
less Excluded Liabilities
Guarantees and Indemnities
Other prescribed liabilities
Liquid Capital

Capital Liquidity Return

Return Date:

CAO – CC, LQC, LM

Liquid Margin Calculation

Current Return		Prior Return
Liquid Capital
Operational Risk Requirement
Counterparty Risk Requirement
Large Exposure Risk Requirement
Position Risk Requirement
Underwriting Risk Requirement

Non Standard Risk Requirement

Liquid Margin

.Ratio of Liquid Capital to Total Risk Requirement

Current Return	Prior Return
Ratio of Liquid Capital to	=	Liquid Capital	=	=
Total Risk Requirement		Total Risk Requirement

Capital Liquidity Return

Return Date:

ADD

Additional Comments

Capital Liquidity Return

Return Date:

CFO

Credit Facilities & Overdraft

STANDBY CREDIT facilities granted in favour of the Participant
Type	Full Name of Provider	Terms And Availability	Amount of Limit
TOTAL STANDBY CREDIT FACILITIES

Schedule 1C Form 5: Risk-Based Capital Requirements – Auditor’s Report

PROFORMA AUDITOR’S REPORTONFINANCIALINFORMATION

Pro Forma Auditor’s Report on Financial Information

KEY

The following key applies throughout this document.

* Where the Participant is a body corporate incorporated or resident outside Australia operating a branch in Australia, the following words may be inserted – “Australian branch”.

** Delete as applicable.

INDEPENDENT AUDITOR’S REPORT TO THE DIRECTORS/PARTNERS** OF [PARTICIPANT_NAME]

To: The Directors/Partners**, [Participant_name]

AUDITOR’S REPORT ON THE RETURN

We have audited the financial information set out in the attached.

Annual Risk-Based Audited Return, excluding the Directors’/Partners’** Statement Relating to Accounts ofaParticipantand “Prior Period” balances asshown in the Audited Risk-Based Return, (the“Return”) of [Participant_name]* (“the Participant”) for the [period]ended [date].

TheResponsibilityoftheDirectors/Partners**fortheReturn

The directors/partners** of the Participant are responsible for the preparation and fair presentation of the financial information set out in the Return in accordance with the requirements of the ASIC Market Integrity Rules (Securities Markets – Capital) 2017. This responsibility includes: establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial information set out in the Return to ensure that the Return is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’sResponsibility

Our responsibility is to express an opinion on the financial information set out in the Return based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial information set out in the attached Return is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of the financial information set out in the Return. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial information set out in the Return whether due to fraud or error.

In making those risk assessments, the auditor considers internal controls relevant to the Participant’s preparation and fair presentation of the financial information set out in the Return in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Participant’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors/partners** of the Participant, as well as evaluating the overall presentation of the financial information set out in the Return.

The Return has been prepared in accordance with Rule9.2.4 of theASIC Market Integrity Rules (Securities Markets – Capital) 2017 as theParticipant iscomplying with the Risk-Based Capital Requirements.

The Return may not be suitable for another purpose. Our report is intended solely for the Participant and ASIC and should not be distributed to or used by parties other than the Participant and ASIC.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

INDEPENDENCE

In conducting our audit, we have complied with the independence requirements of APES 110: Code of Ethics for Professional Accountants.

[QUALIFIED] AUDITOR’S OPINION

In our opinion, [except for the matters referred to in the qualification below], the Return of [Participant_name] for the [period] ended [date] presents fairly, in all material respects, the financial information of the Participant for the [period] ended [date] as required by ASIC in accordance with the ASIC Market Integrity Rules (Securities Markets – Capital) 2017 that are relevant to the preparation and presentation of the Return.

QUALIFICATION (IF APPLICABLE)

Dated this .................................................. day of ..............................................................

Audit Firm “Signature” ....................................................................................................

Name of Audit Firm .............................................................................................................

Address of Audit Firm .........................................................................................................

Partner’s Signature ..............................................................................................................

Name of Partner ...................................................................................................................

If an auditor is not satisfied as to any matter a qualified audit opinion should be expressed.

Schedule 1CForm 6: Risk-Based Capital Requirements – Key Risks and Internal Systems Statement

ATTESTATIONBY DIRECTORS/PARTNERS TOASIC KEYRISKS ANDINTERNALSYSTEMS

Participant: ...........................................................................................................................

Year Ended: .........................................................................................................................

PARTICIPANTS KEY RISKS AND INTERNAL SYSTEMS STATEMENT

We hereby certify and represent that:

The Participant has developed and implemented adequate systems, procedures and controls reasonably designed to achieve compliance, at all times, with the requirements of the ASIC Market Integrity Rules (Securities Markets) 2017 and ASIC Market Integrity Rules (Securities Markets – Capital) 2017, and which are appropriate for the nature and extent of the trading activities being conducted.

This includes review of the obligations under the ASIC Market Integrity Rules (Securities Markets) 2017 and ASIC Market Integrity Rules (Securities Markets – Capital) 2017, the identification of the key risks facing the Participant and the establishment of systems, procedures and controls to monitor and manage those risks including the establishment of policies and procedures to ensure the accurate calculation of the capital requirements.

The systems, procedures and controls are operating effectively and are adequate having regard to the nature and extent of the Participant’s trading activities to ensure compliance with ASIC Market Integrity Rules (Securities Markets) 2017 and ASIC Market Integrity Rules (Securities Markets – Capital) 2017.

We have retained copies of the relevant documentation on which this representation is based and this is available for inspection by ASIC.

Name ........................................................ Name ............................................................

Director/Partner ...................................... Director/Partner ..............................................

Dated this ......................................................... day of .....................................................

Date of Board Resolution (if applicable) ..........................................................................

Note: If a Participant considers it necessary to qualify this standard statement, the reasons should be explained in full in an accompanying statement.

Schedule 1C Form 7: Risk-Based Capital Requirements – Partnership Statutory Declaration

MARKET PARTICIPANTS – PARTNER STATUTORY DECLARATION

Basis of preparation

In completing this statutory declaration ALL liabilities, actual or contingent must be declared. Sufficient assets should be declared to demonstrate an excess of assets over liabilities of not less than $50,000. If net assets are less than $50,000 then (i) all assets must be declared as well as all liabilities (actual or contingent) and (ii) a statement must be provided explaining the source of funds required to meet liabilities.

The declaration is required to be made in accordance with the law of the place where the declaration is executed. The table below sets out the persons who may witness a declaration.

State	Persons who may witness declaration
Victoria	Among others, any justice of the peace, notary public, barrister or solicitor of the Supreme Court, a member of the police force or Parliament, a legally qualified medical practitioner, a bank manager, a dentist or pharmacist, or a public service officer authorised to do so.
New South Wales	Among others, any justice of the peace, notary public, commissioner of the court for taking affidavits, other person authorised by law to administer an oath, or a solicitor holding a current practising certificate.
Queensland	Among others, any commissioner for declarations, justice of the peace, notary public or other officer authorised by law to administer an oath, barrister, solicitor or conveyancer.
Western Australia	Among others, any justice of the peace or other person authorised by law to administer an oath.
South Australia	Among others, any justice, notary public or any officer authorised by law to administer an oath or affirmation.
Tasmania	Among others, any justice, person authorised by law to administer an oath or a commissioner for declarations.

Each page of the notes attached to the statutory declaration must be signed and dated by the partner for identification purposes.

Treatment of property and mortgages

It is intended that the following guidelines be observed in the treatment of property and mortgages:

•
only the partner’s proportion of the property value may be included as an asset in note 5;
•
the partner’s proportion of the mortgage debt to be shown as a liability in note 8;
•
the proportion of the mortgage debt relating to other owners to be shown as contingent liability in note 9; and
•
no proportion of the property owned by the other parties may be included as an asset, contingent or otherwise.

Summary (note 1)

As note 1 is a summary of the totals of other notes, this note must be completed in full.

Treatment of assets (notes 2 to 7)

Accounts as at 30 June last should be attached to this Statutory Declaration in respect of any borrower who is not a recognised borrowing institution.

Assets are to be separately listed in these notes. Where such assets are not registered in the sole name of the partner, particulars must be given. Where assets included in these notes have been offered as security, full particulars must be given.

Treatment of assets pledged for liability of a Participant (note 10)

If any personal assets are pledged as security for a liability of a Participant, those assets should be listed in note 10. They must not be listed in any other notes.

Treatment of assets pledged for other debts not included in note 10 (note 11)

If any of the assets listed are pledged as security for any debt of either the person making this declaration, or a third party, details should be listed in note 11.

Statutory Declaration*

I,	[insert full name]
of	[insert address]
,	[insert occupation]
do solemnly and sincerely declare that:

1.
My actual and contingent liabilities of any nature did not exceed the sum of $and are detailed on notes 8 and 9;

2.
The information stated in notes 1 to 11 inclusive is true and correct;

3.
The realisable value of my assets (excluding my interest in the Participant of ) exceeded the liabilities referred to in clause 1 by at least $ ; and

4.
All insurable assets described in the notes are, at all times, held insured to a value not less than that shown in the attached notes.

Victoria* – Declaration complying with the Evidence Act 1958

And I acknowledge that this declaration is true and correct, and I make it in the belief that a person making a false declaration is liable to the penalties for perjury.

Declared at

)

this

day of

)

[Signature of declarant]

Before me:

[Signature of person before whom the declaration is made]

[Title of person before whom the declaration is made]

_______________________

* Each partner is required to execute the statutory declaration in accordance with the law of the jurisdiction where the declaration is made. Accordingly, please select the appropriate format and delete or cross out those formats which are not relevant.

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

New South Wales* – Declaration under the Oaths Act 1990

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act 1990.

Declared at

)

this

day of

)

[Signature of declarant]

Before me:

[Signature of person before whom the declaration is made]

Queensland* – Declaration under The Oaths Acts, 1867 to 1988 –

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of The Oaths Act of 1867.

Signed and declared by the above-named declarant

in the State of

)

this

day of

)

[Signature of declarant]

Before me:

[Signature of person before whom the declaration is made]

A Justice of the Peace [or as the case may be].

_______________________

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Western Australia* – Declaration under the Evidence Act 1906

And I make this solemn declaration by virtue of section 106 of the Evidence Act 1906.

Declared at

)

this

day of

)

[Signature of declarant]

Before me:

[Signature of person before whom the declaration is made]

[Title of person before whom the declaration is made]

South Australia* – Declaration under the Oaths Act 1936

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act 1936.

Declared at

)

this

day of

)

[Signature of declarant]

Before me:

[Signature of person before whom the declaration is made]

[Title of person before whom the declaration is made]

_______________________

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Tasmania* – Declaration under the Evidence Act 1910

And I make this solemn declaration by virtue of section 132 of the Evidence Act 1910.

Declared at

)

this

day of

)

[Signature of declarant]

Before me:

[Signature of person before whom the declaration is made]

[Title of person before whom the declaration is made]

_______________________

* Each Partner is required to execute the statutory declaration in accordance with the law of the jurisdiction where the declaration is made. Accordingly, please select the appropriate format and delete or cross out those formats which are not relevant.

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 1Summary as at ___/___/20___

Note	Due not later than 1 year	Due later than 1 year but not later than 3 years	Due later than 3 years
Assets
Cash in Bank	2
Marketable Securities	3
Other Debtors	4
Property	5
Investments	6
Other Assets	7
Total Assets
Liabilities
Actual Liabilities	8
Contingent Liabilities	9
Total Liabilities
Net Assets (Total Assets less Total Liabilities)

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 2Cash in bank or on deposit

ASSETS AS AT ___/___/20___

Financial institution

Nature of account

Amount

($)

Total cash in bank or on deposit

Note 3Marketable/liquid securities

Company

Number of securities

Type of security

Market value at

___/___/20___

Total Value

Total market value of liquid securities

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 4Other debtors

Borrower

Interest rate

Term of deposit

Secured/unsecured (if secured, provide details)

Amount

($)

Total other debtors

Note 5 Property

Address & description

Unimproved capital value as set by valuing authority

Method of valuation

Estimated realisable value

Proportion owned

(%)

Value

Total property value

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 6 Investments

Name of business owned

Total net assets

Proportion owned

(%)

Value

Total investment value

Note 7 Other assets

Description of Assets

Method of valuation

Estimated realisable value

Proportion owned

(%)

Value

Total other assets

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 8Existing liabilities

Due within 1 year	Due between 1 year and 3 years	Due after 3 years	Total
Description
Outstanding tax assessments
Excess of estimated tax payable over provisional tax paid*
Estimate of tax applicable to income for financial year to date
Bank Overdrafts
Property Mortgages (show address and partner’s share of mortgage)
Other Loans
*Other Liabilities (details required)
Total existing liabilities

*Calculate excess of estimated tax payable over provisional tax paid as per below:

Estimated tax payable for the year to 30th June	$ x
less Provisional tax paid	$ y
Amount to be declared	$

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 9Contingent liabilities*

Due within 1 year	Due between 1 year and 3 years	Due after 3 years	Total
Description
Debt on residence (show address)
Debt on all jointly owned properties (show address)
Debt on other properties
Other contingent liabilities
Total contingent liabilities

*Show that part of contingent liabilities which relates to debt of parties other than the partner.

Note 10 Assets pledged for liability of a Participant

Description of assets	Pledged to	Maximum liability	Value of assets pledged
Total assets pledged			$

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 11 Assets pledged for other debts not included in note 10

Description of assets	Pledged to	Maximum liability	Value of assets pledged
Total assets pledged			$

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner: