Futures Industry Regulations (Cth)

Futures Industry Regulations

Statutory Rules 1986 No. 150 as amended

made under the

Futures Industry Act 1986

This compilation was prepared on 23 October 2001
taking into account amendments up to SR 1990 No. 41

[Note: The enabling legislation for these Statutory Rules was repealed by Act No. 55 of 2001 on 15 July 2001]

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

Contents

Page

Part IPreliminary

1Citation [see Note 1] 5

2Interpretation 5

Part IIRequirements as to forms and other documents

3Compliance with forms 6

4General requirements for forms etc 6

5Annexures accompanying forms 7

6Particulars of forms 7

7Manner of signing documents 8

8Time for lodging documents 8

9Address of registered office, principal place of business etc 8

10Application for licences may be in sealed envelopes 9

Part IIIMatters prescribed for the purposes of particular provisions

11Recognised futures exchanges — prescribed bodies corporate 10

12Evidence of authority under subsection 13 (4) of the Act 10

13Notice relating to disclosure of information to Commission 10

14Notice of requirement by inspector 10

15Allowances and expenses payable to person required to attend for examination 11

16Authentication of record of interview at examination 11

17Application for licence 12

18Conditions of licence: general 12

19Additional matters for inclusion in Register of Licence Holders 12

20Notice of change in particulars of licensee 13

21Annual statement required to be lodged by licensee 13

22Register of holders of proper authorities 13

22BForms of notice by licensee to Commission 13

22CCopy of register — prescribed amount 14

23Agreement to waive operation of paragraph 83 (2) (b) of the Act in relation to issue of contract notes 14

24Risk disclosure statement to be given to clients of futures broker 14

25Auditor’s return where auditor is firm carrying on business under unregistered business name 14

26Information and matters prescribed for purposes of futures brokers’ accounts 15

27Rate of interest for claims against fidelity fund 15

28Notice calling for claims against fidelity fund 15

29Notice of disallowance of claims against fidelity fund 15

30Period for which broker is required to retain records of instructions 15

31Futures brokers and futures advisers that are banks — credit to employees to deal in futures contracts 16

32Period for which Commission is required to retain documents 16

33Prescribed offences, penalties and penalty notices 16

34Exemption of clearing houses from Part IV, sections 83, 84, 85 and Part VI of the Act 17

35Exemption of certain transactions by a futures broker on behalf of a member of a clearing house from certain provisions of the Act 17

36Exemption of Comex Clearing Association, New York, from provisions of the Act concerning clearing houses 18

37Exemption of ITCH contracts from the provisions of the Act 18

38Exemptions from the provisions of Part IV of the Act 19

Schedule 1 Recognised Futures Exchanges 23

Schedule 2 Forms 25

Form 1Futures Industry 25

Form 2Futures Industry 26

Form 3Futures Industry 28

Form 4Futures Industry 38

Form 7Futures industry 47

Form 8Futures Industry 56

Form 9Futures industry 67

Form 10AFutures Industry 75

Form 10BFutures Industry 77

Form 10CFutures industry 79

Form 11Futures Industry 81

Form 12Futures Industry 82

Form 13Futures Industry 84

Form 14Futures Industry 85

Form 15Futures Industry 103

Form 16Futures Industry 110

Form 17Futures Industry 113

Form 18Futures Industry 114

Form 19Futures Industry 115

Schedule 3 Allowances and expenses of person required to attend for examination 118

Schedule 4 Prescribed offences and prescribed penalties 120

Notes 121

Part I Preliminary

Citation [see Note 1]

These Regulations may be cited as the Futures Industry Regulations.

Interpretation

(1)In these Regulations, unless the contrary intention appears:

body corporate includes a body incorporated outside the Territory.

local authority means the Corporate Affairs Commission for the Territory.

the Act means the Futures Industry Act 1986.

(2)In these Regulations, a reference to a form is a reference to a form set out in Schedule 2.

(3)In a form in Schedule 2, unless the contrary intention appears, a reference to a Part, Division, section, subsection, paragraph or subparagraph is a reference to a Part, Division, section, subsection, paragraph or subparagraph, as the case may be, of the Act.

Part II Requirements as to forms and other documents

Compliance with forms

(1)Strict compliance with the style of a form set out in Schedule 2 is not necessary unless the Commission so requires.

(2)Strict compliance with the requirements of a form set out in Schedule 2 is necessary unless the Commission otherwise approves.

General requirements for forms etc

Unless the Commission otherwise approves, a document (including a form) lodged with the Commission for the purposes of the Act shall:

(a)be on paper of medium weight, of good quality and of a size not smaller than international sheet size A5 and not larger than foolscap folio size or international sheet size A4;

(b)be clearly printed, written or otherwise produced in a manner that is permanent and will make possible a reproduction, by photographic means, that is satisfactory to the Commission;

(c)not be a carbon copy or a copy reproduced by any spirit duplication method;

(d)have margins of not less than 25 millimetres on the left-hand side and not less than 13 millimetres on the right-hand side;

(e)where it comprises 2 or more sheets, be fastened together securely in the top left-hand corner; and

(f)specify on the first sheet:

(i)the title of the document;

(ii)the name, address and telephone number of the person by whom or on whose behalf the document is lodged; and

(iii)the words “lodged with the Commission on ..............”.

Annexures accompanying forms

(1)Where the space provided in a form is insufficient to contain all the information required in relation to a particular item, that information shall be set out in an annexure to the form.

(2)An annexure to a form shall have an identifying mark and be endorsed with the following words completed and signed by each person signing the form to which the document is annexed:

This is the annexure of (insert the number of pages) pages marked (insert an identifying mark) referred to in the (insert the description of the form) signed by me (us) and dated (insert the date of signing)

......................................................

Signature(s)

(3)The pages in an annexure to a form shall be numbered consecutively.

(4)Where a document, copy of a document or other matter is annexed to a form, reference made in the form to the annexure shall be by its identifying mark, the number of pages in it and a brief description of the nature of the document and its contents.

(5)In this Regulation, a reference to an annexure to a form includes a reference to a document, copy of a document or any other matter accompanying, attached to or annexed to the form.

Particulars of forms

(1)Where completion of a form (including compliance with any instructions specified in or relating to the form) necessitates the furnishing of particulars, or the provision of documents, which are not specifically required to be furnished or provided by the provision of the Act for the purposes of which the form is prescribed, the particulars are prescribed as particulars to be stated, set out or contained in, and the documents are prescribed as documents to accompany, the application or statement to which the form relates.

(2)A form shall be completed and submitted in accordance with such directions and instructions as are specified in, or relate to, the form.

Manner of signing documents

(1)Subject to the Act and these Regulations, where a document (including a form) relating to a relevant organisation or a body corporate is required to be lodged by or on behalf of the organisation or body corporate, the document shall be signed by a member of the board of directors or committee of management of the organisation or body corporate or by the secretary or principal executive officer of the organisation or body corporate.

(2)The name of a person signing a form that is lodged with the Commission for the purposes of the Act shall be legibly written under or alongside the signature of the person.

Time for lodging documents

Where a document, including a copy of a document, is required to be lodged with the Commission and a period of time within which the document is to be lodged is not prescribed, the document shall be lodged within one month, or within such further period as the Commission in special circumstances allows, after the happening of the event to which the document relates.

Address of registered office, principal place of business etc

Where notice is required by these Regulations of:

(a)the address of an office or a proposed office or a place; or

(b)the address of a place of business;

of a body corporate or a person, the notice shall specify that address including:

(c)where applicable, the number of the room in which;

(d)where applicable, the number of the floor or level on which; and

(e)the State or Territory in which;

the office or place of business is, or is to be, situated.

Application for licences may be in sealed envelopes

An application to the Commission for a futures broker’s licence or a futures adviser’s licence may be enclosed in a sealed envelope that:

(a)states that an application for a licence is enclosed;

(b)describes the kind of licence for which application is made; and

(c)sets out the name, address and telephone number of the applicant.

Part III Matters prescribed for the purposes of particular provisions

Recognised futures exchanges — prescribed bodies corporate

For the purposes of paragraph (b) of the definition of recognised futures exchange in subsection 4 (1) of the Act, the bodies corporate referred to in Schedule 1 are prescribed.

Evidence of authority under subsection 13 (4) of the Act

Where:

(a)a person produces a document that is issued by the Commission; and

(b)that document states that the person may require the production of books pursuant to paragraph 13 (4) (a) or (b), as the case may be, of the Act;

that document is evidence of:

(c)the person’s authority to require the production of books in accordance with whichever of those paragraphs is specified in that document; and

(d)any limitation on that authority that is specified in that document pursuant to subsection 13 (6) of the Act.

Notice relating to disclosure of information to Commission

For the purposes of subsection 18 (7) of the Act, Form 1 is the prescribed form of notice.

Notice of requirement by inspector

(1)For the purposes of subsection 25 (1) of the Act, Form 2 is the prescribed form of notice.

(2)For the purposes of subsection 25 (1) of the Act, the prescribed manner of giving a notice under that subsection is:

(a)by giving the notice to the prescribed person personally;

(b)by sending the notice by pre-paid post addressed to the prescribed person at that person’s usual place of residence or business or at the place of residence or business of that person last known to the Commission; or

(c)by leaving the notice at the usual place of residence or business of the prescribed person or the place of residence or business of that person last known to the Commission with a person who apparently resides or is employed at that place and is apparently over 16 years of age.

Allowances and expenses payable to person required to attend for examination

For the purposes of subsection 25 (12) of the Act, the prescribed allowances and expenses to which a person who attends for examination under section 25 of the Act is entitled are the allowances and expenses set out in Schedule 3.

Authentication of record of interview at examination

(1)For the purposes of subsection 27 (3) of the Act, a written record of a statement made at an examination under Division 2 of Part II of the Act may be authenticated:

(a)by a certificate in writing given under the hand of:

(i)the person who prepared the record; or

(ii)the person under whose supervision the record was prepared;

certifying that the record is a true transcript of the record of examination; or

(b)by any person present at the examination, or at any part of the examination, signing that person’s own name at the bottom of each page of the record or, as the case may be, at the bottom of each page of that part of the record which records the part of the examination at which that person was present.

(2)In this Regulation, a reference to a statement made at an examination includes a reference to a question asked, an answer given, or any other comment or remark made, at the examination.

Application for licence

(1)The prescribed form of application under subsection 65 (1) of the Act for a futures broker’s licence or a futures adviser’s licence is:

(a)Form 3, if the applicant is a natural person; or

(b)Form 4, if the applicant is a body corporate.

Conditions of licence: general

(1)For the purposes of section 69 of the Act, a licence is subject to the conditions that the holder of the licence must ensure that each representative of the holder:

(a)is adequately supervised in the performance of the duties that he or she is required by the holder to perform; and

(b)is sufficiently trained in relation to those duties before acting as a representative; and

(c)keeps up to date in relation to those duties by means of continuing training programs.

(2)The Commission may, by notice in writing, require a holder of a licence to satisfy it that the conditions referred to in subregulation (1) have been met by the holder.

Additional matters for inclusion in Register of Licence Holders

For the purposes of paragraph 72 (5) (c) of the Act, the following matters are prescribed in respect of a recognised licensee:

(a)particulars of the type of licence held by the recognised licensee;

(b)the name of the State or Territory in which the licence was granted;

(c)the address of the place, or the principal place, of business of the recognised licensee;

(d)the name, or the name and style, under which the business of the recognised licensee is carried on.

Notice of change in particulars of licensee

For the purposes of section 73 of the Act, Form 7 is the prescribed form of notice giving particulars of an event referred to in that section.

Annual statement required to be lodged by licensee

(1)For the purposes of subsection 74 (1) of the Act:

(a)Form 8 is the prescribed form of statement required to be lodged with the Commission by a person, other than a body corporate, who is or has been the holder of a futures broker’s licence or a futures adviser’s licence; and

(b)Form 9 is the prescribed form of statement required to be lodged with the Commission by a body corporate that is or has been the holder of a futures broker’s licence or a futures adviser’s licence.

(2)For the purposes of subsection 74 (3) of the Act, the prescribed information is the information that is required by Form 8 or 9, as the case may be, to be set out in that form.

Register of holders of proper authorities

(1)For the purposes of paragraph 78E (3) (e) of the Act, the date of birth of each person who holds a proper authority from the licensee is prescribed information.

(2)For the purposes of paragraph 78E (3) (e) of the Act, the information specified in items 1, 2, 3 and 5 in Form 10C is prescribed.

22BForms of notice by licensee to Commission

(1)A notice under subsection 78F (2) or (3) of the Act must be in accordance with Form 10A.

(2)A notice under subsection 78F (4) or (6) of the Act must be in accordance with Form 10B.

(3)A notice under subsection 78F (5) of the Act must be in accordance with Form 10C.

22CCopy of register — prescribed amount

For the purposes of paragraph 78G (3) (a) of the Act, the prescribed amount is:

(a)50 cents for each page, or part of a page, not exceeding foolscap folio size; or

(b)if required by the licensee, 50 cents for each 100 words or part of 100 words;

to be supplied by the licensee.

Agreement to waive operation of paragraph 83 (2) (b) of the Act in relation to issue of contract notes

For the purposes of paragraph 83 (2) (b) of the Act, the prescribed manner of agreeing to waive the operation of that paragraph is to enter into an agreement in accordance with Form 11.

Risk disclosure statement to be given to clients of futures broker

For the purposes of subparagraph 87 (a) (iii) of the Act, Form 12 is the prescribed form of risk disclosure statement.

Auditor’s return where auditor is firm carrying on business under unregistered business name

For the purposes of paragraph 92 (3) (e) of the Act, Form 13 is the prescribed form of return.

Information and matters prescribed for purposes of futures brokers’ accounts

(1)For the purposes of subsection 95 (2) of the Act, in respect of a profit and loss account and balance sheet prepared by a futures broker, the prescribed information and matters are:

(a)in the case of a futures broker who is not a body corporate — the information and matters that are required by Form 14 to be set out in that form; or

(b)in the case of a futures broker that is a body corporate — the information and matters that are required by Form 15 to be set out in that form.

(2)For the purposes of subsection 95 (2) of the Act, in respect of an auditor’s report on the profit and loss account and balance sheet prepared by a futures broker the prescribed information and matters are the information and matters that are required by Form 16 to be set out in that form.

Rate of interest for claims against fidelity fund

For the purposes of subsection 117 (4) of the Act, the prescribed rate of interest is 10% per annum.

Notice calling for claims against fidelity fund

For the purposes of subsection 119 (1) of the Act, Form 17 is the prescribed form of notice.

Notice of disallowance of claims against fidelity fund

For the purposes of subsection 120 (4) of the Act, Form 18 is the prescribed form of notice of disallowance.

Period for which broker is required to retain records of instructions

For the purposes of subsection 138 (7) of the Act:

(a)a futures broker shall maintain instructions by a client to deal in futures contracts separately from instructions to deal in futures contracts on the broker’s own account;

(b)the prescribed particulars of instructions by a client to deal in futures contracts are short particulars of the matters referred to in paragraphs 138 (7) (a), (b) and (c) of the Act;

(c)the prescribed particulars of instructions to deal in futures contracts on the broker’s own account are short particulars of the matters referred to in paragraphs 138 (7) (d) and (e) of the Act; and

(d)the prescribed period is 7 years.

Futures brokers and futures advisers that are banks — credit to employees to deal in futures contracts

For the purposes of subparagraph 160 (5) (a) (iii) of the Act, the provision of subsection 139 (4) of the Act do not have effect in relation to a bank that is a futures broker or futures adviser by reason only of the giving by the bank of credit to an employee of the bank where:

(a)the credit is given for the purpose of enabling or assisting the employee to deal in futures contracts; or

(b)the bank knows or has reason to believe that the credit will be used by the employee for the purpose of dealing in futures contracts.

Period for which Commission is required to retain documents

For the purposes of subsection 143 (4) of the Act, the prescribed period is 7 years.

Prescribed offences, penalties and penalty notices

(1)For the purposes of section 149 of the Act:

(a)an offence committed by a person that is constituted by contravention of a provision of the Act specified in Column 2 of Schedule 4 in an item in that Schedule is a prescribed offence; and

(b)the prescribed penalty in respect of a prescribed offence referred to in paragraph (a) is the penalty specified in column 3 of Schedule 4 in that item.

(2)For the purposes of subsection 149 (1) of the Act, Form 19 is the prescribed form of notice.

Exemption of clearing houses from Part IV, sections 83, 84, 85 and Part VI of the Act

The provisions of Part IV, sections 83, 84, 85 and Part VI of the Act do not have effect in relation to clearing houses.

Exemption of certain transactions by a futures broker on behalf of a member of a clearing house from certain provisions of the Act

(1)In subregulation (3), broker has the same meaning as in subsection 83 (1) of the Act.

(2)In subregulations (4) and (5), broker has the same meaning as in subsection 84 (1) of the Act.

(3)Where in respect of a transaction, being the acquisition or disposal of a futures contract, that is entered into by a broker on behalf of a member of the clearing house of a futures exchange, the broker gives to that member in respect of that transaction the information that the broker is required, under the business rules of that exchange, to give to that member in respect of that transaction, the provisions of subsection 83 (2) of the Act do not have effect in relation to that transaction.

(4)Where in respect of a transaction, being the acquisition or disposal of a futures contract, that is entered into by a broker on behalf of a member of the clearing house of a futures exchange, the broker has held money or property on account of that member and gives to that member in respect of that transaction the information that the broker is required, under the business rules of that exchange, to give to that member in respect of that transaction, the provisions of paragraphs 84 (2) (g) and (h) of the Act do not have effect in relation to that transaction.

(5)Where in respect of a transaction, being the acquisition of a futures contract before or during a particular month, that is entered into by a broker on behalf of a member of the clearing house of a futures exchange, the futures contract has not been disposed of as at the end of that month and after the end of that month the broker gives to that member in respect of that transaction the information that the broker is required, under the business rules of that future exchange, to give to that member in respect of that transaction, the provisions of subsection 84 (2) of the Act do not have effect in relation to that transaction.

Exemption of Comex Clearing Association, New York, from provisions of the Act concerning clearing houses

The provisions of the Act that apply only to clearing houses do not have effect in relation to the Comex Clearing Association of New York, a clearing house for a futures exchange.

Exemption of ITCH contracts from the provisions of the Act

The provisions of the Act do not have effect in relation to a transaction that is a dealing in a futures contract that is a forward short term interest rate transferable cash hedge contract known as an ITCH contract entered into by Harlow-Butler (Australia) Proprietary Limited on behalf of:

(a)a body corporate that is a registered corporation within the meaning of the Financial Corporations Act 1974, being a corporation that is listed, in the list in force on the day on which this regulation comes into operation prepared for the purposes of subsection 10 (1) of that Act:

(i)in category A as a building society;

(ii)in category C as an authorised money market dealer;

(iii)in category F as a finance company; or

(iv)in category G as a general financier;

(b)a person who has authority under the Insurance Act 1973 to carry on insurance business; or

(c)a company registered by the Life Insurance Commissioner under section 19 of the Life Insurance Act 1945.

Exemptions from the provisions of Part IV of the Act

(1)In this regulation:

investment manager means a person:

(a)who is the holder of a dealers licence granted under Part IV of the Securities Industry Act 1980; and

(b)other than a person entering into a transaction in relation to which the provisions of Part IV of the Act do not have effect because of the operation of paragraph (2) (a), (b), (c), (d) or (e).

prescribed trustee corporation means a body corporate that is:

(a)an authorised trustee corporation within the meaning of the Companies Act 1981; and

(b)referred to in regulation 14 of the Companies Regulations;

to which the Commission has granted under subsection 167 (1) of that Act approval to act as trustee or representative for the purposes of a deed.

(2)The provisions of Part IV of the Act do not have effect in relation to:

(a)a transaction that is a dealing in a futures contract entered into by a prescribed trustee corporation acting as trustee or representative for the purposes of a deed approved by the Commission under subsection 166 (1) of the Companies Act 1981, being a dealing executed on behalf of that prescribed trustee corporation by the holder of a futures broker’s licence;

(b)a transaction that is a dealing in a futures contract entered into by a body corporate on behalf of another body corporate that, in relation to the body corporate first mentioned in this paragraph, is a related corporation within the meaning of the Companies Act 1981;

(c)a transaction that is a dealing in a futures contract entered into by a member of a futures exchange, who under the business rules of that futures exchange is a local member, pursuant to order execution business performed in accordance with those rules on a give-up basis on behalf of a member of that futures exchange who is under those rules a floor member;

(d)a transaction that is a dealing in a futures contract:

(i)entered into by a management company within the meaning of Division 6 of Part IV of the Companies Act 1981 that holds a dealers licence granted under Part IV of the Securities Industry Act 1980 and that enters into the contract:

(A)under the covenants contained in a deed approved under that Division; and

(B)only on behalf of the holders of prescribed interests under that deed;

(ii)executed on behalf of the company by the holder of a futures broker’s licence; and

(iii)the value of which, when added to the total value of any other futures contracts entered into by the company on behalf of the holders of those prescribed interests, does not exceed 15% of the total value of assets held by the trustee or representative under that deed; or

(e)a transaction that is a dealing in a futures contract:

(i)entered into by the trustee, or by a manager appointed by the trustee, of a fund:

(A)that is an approved deposit fund within the meaning of the Occupational Superannuation Standards Act 1987; or

(B)that is a superannuation fund within the meaning of that Act;

(ii)entered into:

(A)under the covenants contained in the deed relating to that fund; and

(B)only on behalf of the persons who are depositors in relation to that fund;

(iii)executed on behalf of the trustee or manager by the holder of a futures broker’s licence; and

(iv)the value of which, when added to the total value of any other futures contracts entered into by the trustee or manager on behalf of those depositors, does not exceed 15% of the total value of assets held by the trustee under that deed;

(f)a transaction that is a dealing in a futures contract:

(i)entered into by an investment manager in the course of managing funds:

(A)deposited by a person (in this paragraph called “the client”) for the purposes of investment on terms that permit the investment manager to effect transactions in futures contracts without prior reference to or approval of the client; and

(B)which total at least $500,000; and

(ii)executed on behalf of the investment manager by the holder of a futures broker’s licence; and

(iii)the value of which, when added to the total value of any other futures contracts entered into by the investment manager on behalf of the client, does not exceed 15% of total amount of funds so deposited with the manager.

(3)For the purposes of subparagraph (2) (d) (iii), (e) (iv) or (f) (iii):

(a)where a futures contract cancels another futures contract, the value of both contracts must be disregarded for the purpose of calculating the total value of the futures contracts referred to in that subparagraph; and

(b)where, but for this subregulation:

(i)the value of a futures contract (in this paragraph called “the proposed contract”) if entered into would exceed the limit imposed by that subparagraph; and

(ii)the proposed contract would comply with the requirements of the subparagraphs preceding that subparagraph; and

(iii)the proposed contract, if entered into, would cancel another contract;

the limit imposed by that subparagraph does not apply to the proposed contract.

(4)For the purposes of subregulation (3), a futures contract to sell cancels an earlier futures contract to buy (and vice versa) where both contracts:

(a)relate to:

(i)the same type and amount of subject matter; and

(ii)the same month; and

(b)are entered into:

(i)in the case of futures contracts referred to in paragraph (2) (d) — on behalf of the holders of prescribed interests under the deed; or

(ii)in the case of futures contracts referred to in paragraph (2) (e) — on behalf of depositors in relation to that fund; or

(iii)in the case of futures contracts referred to in paragraph (2) (f) — on behalf of the same client.

Schedule 1 Recognised Futures Exchanges

(regulation 11)

The Baltic Futures Exchange (BFE)

Board of Trade of the City of Chicago (CBOT)

Board of Trade of Kansas City, Missouri, Inc.

Chicago Mercantile Exchange (CME)

Chicago Rice and Cotton Exchange

Coffee, Sugar and Cocoa Exchange, Inc.

Commodity Exchange Inc. (COMEX)

Hong Kong Futures Exchange Ltd (HKFE)

The International Futures Exchange (Bermuda) Ltd. (INTEX)

The International Petroleum Exchange of London Ltd. (IPE)

London Futures and Options Exchange (FOX)

The London International Financial Futures Exchange Ltd. (LIFFE)

Marche a Terme International de France (The French International Futures Market) (MATIF)

The Metal Market and Exchange Company Ltd. (London Metal Exchange) (LME)

Mid America Commodity Exchange (MIDAM)

Minneapolis Grain Exchange

The Montreal Exchange (ME)

New York Cotton Exchange (NCE)

New York Futures Exchange, Inc. (NYFE)

New York Mercantile Exchange (NYMEX)

New Zealand Futures Exchange Ltd. (NZFE)

Osaka Securities Exchange (OSE)

Philadelphia Stock Exchange (PHLX)

Philadelphia Board of Trade

The Singapore International Monetary Exchange Limited (SIMEX)

Swiss Options and Financial Futures Exchange (SOFFEX)

Tokyo Commodity Exchange for Industry (TOCOM)

Tokyo Grain Exchange

Tokyo International Futures Exchange (TIFFE)

Tokyo Stock Exchange (TSE)

The Toronto Futures Exchange (TFE)

The Winnipeg Commodity Exchange (WCE)

Schedule 2 Forms

Form 1 Futures Industry

(subsection 18 (7))

(regulation 13)

NOTICE RELATING TO A REQUIREMENT TO DISCLOSE INFORMATION TO THE COMMISSION

TAKE NOTICE that, in relation to a requirement made of a person under subsection (4) of section 18 of the Futures Industry Act 1986 to disclose information to the National Companies and Securities Commission, the terms of subsections (5) and (6) of that section are as follows:

“(5) A person is not excused from disclosing information to the Commission pursuant to a requirement made of the person under subsection (4) on the ground that the disclosure of the information might tend to incriminate the person.

“(6) Where a person claims, before making an oral statement disclosing information that the person is required to disclose by a requirement made of the person under subsection (4), that the statement might tend to incriminate the person, evidenced of that statement is not admissible in evidence against the person in criminal proceedings other than proceedings under this section.”.

*Dated 19 . Signature of person giving notice:

*Given under the Seal of the National Companies and Securities Commission at on this day of 19 .

*Strike out whichever is inapplicable.

Form 2 Futures Industry

(subsection 25 (1))

(subregulation 14 (1))

NOTICE OF REQUIREMENT BY AN INSPECTOR INVESTIGATING MATTERS RELATING TO DEALING IN FUTURES CONTRACTS

To: (1)

In relation to an investigation of (2) ...............................................................

..........................................................................................................................

TAKE NOTICE that under subsection 25 (1) of the Futures Industry Act 1986 you are required—

(a).... to appear on (3) ....... 19 , at (4) ........... before (5) ......................

at (6) .............................................................................................

.......................................................................................................

for examination on oath or affirmation and to answer questions put to you in relation to the investigation;

(b)to produce to (5) ..................... on (3) ............................. 19 ....., at (4)...............at (6) ................................................the following books : (7) ..........................................and all such other books in your custody or under your control as relate to the investigation; and

(c).... to give to (5) .................................................................................

all reasonable assistance in connection with the investigation.

Dated 19 .

Signature of the person carrying out the investigation:

(1) Insert the full name and address of the person to whom notice is to be given.

(2)State the nature of the matter to which the investigation relates.

(3)Insert the date.

(4)Insert the time.

(5)Insert full name of the person carrying out the investigation.

(6) Insert full particulars of the place at which the requirement is to be satisfied.

(7)Describe books that are to be produced.

NOTICE OF RELEVANT STATUTORY PROVISIONS

1. In relation to subsections 25 (1) and (2) of the Futures Industry Act 1986, subsections 25 (5), (9) and (10) provide as follows:

“(5) A prescribed person shall not, without reasonable excuse, refuse or fail to comply with a requirement made under subsection (1).

Penalty:$10,000 or imprisonment for 2 years, or both.

“(9) A duly qualified legal practitioner acting for a prescribed person:

(a) may attend an examination of that person; and

(b) may, at such times during the examination as the inspector determines:

(i)address the inspector; and

(ii)examine that person,

in relation to matters in respect of which the inspector has questioned that person.

“(10) A prescribed person is not excused from answering a question put to the person by an inspector on the ground that the answer might tend to incriminate the person but, where the person claims, before answering the question, that the answer might tend to to incriminate the person, the answer is not admissable in evidence against the person in criminal proceedings other than proceedings under this section or other proceedings in respect of the falsity of the answer.”.

2. Under Division 2 of Part II of the Futures Industry Act 1986 “prescribed person” means a person suspected or believed by an inspector, on reasonable grounds, to be capable of giving information concerning any matter being, or to be, investigated by the inspector pursuant to that Division.

3. In relation to the reference to “books” in paragraph (b) of this form, subsection 4 (1) of the Futures Industry Act 1986 defines “books” as follows:

books includes any register or other record of information and any accounts or accounting records, however compiled, recorded or stored, and also includes any document.

Form 3 Futures Industry

(subsection 65 (1))

(subregulation 17 (1))

APPLICATION BY A NATURAL PERSON FOR A FUTURES BROKER’S LICENCE OR A FUTURES ADVISER’S LICENCE

Application is made for a *futures broker’s/*futures adviser’s licence and the following statements are made in respect of the application:

1.(a) The applicant’s surname is — ..........................................

The applicant’s other names are — ..................................

(b)The residential address of the applicant is —

...........................................................................................

State or Territory ......................... Postcode......................

Telephone No...................................... (Specify STD Code)

(c)The postal address of the applicant (if different from the applicant’s residential address) is —

...........................................................................................

State or Territory ......................... Postcode......................

Telephone No. .................................... (Specify STD code)

(d)The applicant’s date of birth is — ....... / ...... / 19 .....

The applicant’s place of birth is — ...................................

(Specify the State or Territory or, if born outside Australia, the country)

(e)In the past 10 years the applicant has resided in Australia for ................ years.

(f)The full name or names under which the applicant’s business *is/*is to be carried on is —

..............................................................................................

(g)The address of the principal place at which the business of the applicant *is/*is to be carried on is —

...........................................................................................

State or Territory ......................... Postcode......................

Telephone No. .................................... (Specify STD code)

Telex No. ..........................................................................

Facsimile No. ....................................................................

(h)The addresses of all other places, whether within Australia or elsewhere, at which the business of the applicant *is/*is to be carried on is —

...........................................................................................

State, Territory or Country............... Postcode.................

Telephone No. ................... (Specify STD code/ISD code)

Telex No. ..........................................................................

Facsimile No. ....................................................................

(Indicate whether those places are established or are to be established)

2.The nature of the principal business of the applicant is —

..............................................................................................................

3. The activity for which the applicant requires a licence is — (Specify in detail).........................................................................

..............................................................................................................

4. The applicant intends to deal in *all kinds/*the following kinds of futures contracts:

..............................................................................................................

*5. In relation to the business carried on or to be carried on by the applicant —

(a)particulars of each person with whom the applicant carries on or intends carrying on business in partnership are as follows:

Full name ...................................................................................

Address (including State or Territory and postcode)

.....................................................................................................

Telephone No........................................ (Specify STD code)

Full name ...................................................................................

Address (including State or Territory and postcode)

.....................................................................................................

Telephone No............................................... (Specify STD code)

(b)the applicant’s interest in partnership (expressed as a percentage of total capital in the partnership) is........%.

(c)particulars of each person who, directly or indirectly, exercises, or has or will have power to exercise, a controlling influence over the management and policies of the business (other than persons referred to in paragraph (a)) are as follows:

Full name ...................................................................................

Address (including State or Territory and postcode)

.....................................................................................................

Telephone No............................................... (Specify STD code)

Full name ...................................................................................

Address (including State or Territory and postcode)

.....................................................................................................

Telephone No.......................................... (Specify STD code)

(d)the particulars of any person who directly or indirectly has or will have any share in profits of the business (other than persons referred to in paragraph (a)) are as follows:

Full name ...................................................................................

Address (including State or Territory and postcode)

.....................................................................................................

Telephone No............................................... (Specify STD code)

Full name ...................................................................................

Address (including State or Territory and postcode)

.....................................................................................................

Telephone No............................................... (Specify STD code)

6. Is the applicant a director of a body corporate or bodies corporate, whether incorporated in the Territory or elsewhere?.........Answer *Yes *No

If the answer is “Yes”, specify the following particulars of the directorship or directorships held:

Full name of body corporate

Place of incorporation of body corporate

Date of applicant’s appointment as a director of body corporate

7. Answer the questions “Yes” or “No” in the space provided. If an answer is “Yes”, attach annexures giving all relevant particulars.

Within the past 10 years has the applicant or any person referred to in Item 5 (a) or (c), whether in Australia or elsewhere —

ANSWER

(a)     held a licence or been registered in any place other than in the Territory under any law which requires licensing or registration in relation to dealing in futures contracts or acting as a futures adviser?

.....................

         (b)     held a licence or been otherwise authorised by law to carry on any trade, business or profession?

..................... .....................

         (c)     been affected in the right to carry on any trade, business or profession for which a specific licence, registration or other authority is required by law?

.....................

         (d)     been a member, or partner in a member firm, of any futures exchange or futures association or of any stock, securities or other trading exchange?

.....................

         (e)     dealt in futures contracts on the applicant’s own account?

.....................

         (f)     been an agent, employee or officer of, a representative of, or a partner, or other participant, in a business that dealt in futures contracts on its own account?

.....................

         (g)     been affected by disciplinary measures (including suspension or removal from membership) imposed by any futures exchange, futures association, stock, securities or other trading exchange or professional body?

.....................

         (h)     been refused membership of any futures exchange or futures association or of any stock, securities or other trading exchange or professional body?

.....................

         (i)     carried on business under any name other than the name or names shown in this application?

.....................

         (j)     been known by any name other than the name or names shown in this application?

.....................

         (k)     had judgment (including findings in relation to fraud, misrepresentation or dishonesty) given against the applicant in any civil proceedings? (If the answer is “Yes”, using an annexure, give full details, including whether or not the judgment is unsatisfied.)

.....................

         (l)⁽¹⁾   been an insolvent under administration? .....................

         (m)    been convicted of any offence, other than a traffic offence?

.....................

         (n)     been the subject of any proceedings which are pending and which may lead to a conviction for an offence, other than a traffic offence?

.....................

         (o)     been engaged in the management of any bodies corporate other than those referred to in Item 6?

.....................

         (p)     been refused a fidelity or surety bond or professional indemnity insurance?

.....................

8. In the case of an applicant for a futures broker’s licence who is, or intends to become, a member, or a partner in a member firm, of a futures exchange or a futures association, the applicant *or/*and the member firm *has/*has not been granted any exemption from capital requirements by the committee of the futures exchange or futures association.

If the applicant or the member firm has been granted such an exemption, attach an annexure giving all relevant particulars.

9. The applicant *has/*has not had experience in performing the functions of a futures broker, or a futures adviser.

If the applicant has had any such experience, attach an annexure giving all particulars of that experience.

10. Is the applicant a member of a futures exchange or futures association? Answer *Yes *No

If the answer is “Yes” —

(a)specify the name of the futures exchange or futures association:

(b)specify the class or classes of that membership:

(c)specify the applicant’s membership number or numbers:

(d)state whether the applicant is permitted to deal in all kinds of futures contracts:

(e)if the applicant is permitted to deal only in certain kinds of futures contracts, specify those kinds:

11. The following are details of the applicant’s employment and business activities during the past 5 years:

If self-employed, so state.

Full name of employer

Address of employer (including State or Territory and postcode)

Nature of business of employer

Nature of each employment or activity

Dates of commencement and conclusion of each employment or activity

12⁽²⁾. Additional information that is relevant to this application is as follows:

.....................................................................................................................

13⁽³⁾. The applicant consents to any police force providing information concerning any offences, other than traffic offences, of which the applicant has been convicted in Australia or elsewhere within the past 10 years.

Dated 19 .

Signature of applicant ...............................................................................

* Strike out whichever is inapplicable.

NOTES

(1)Where the applicant has or had under the law of a country other than Australia or of an external Territory a status equivalent to that of an insolvent under administration, annex particulars of that status.

If the applicant is or has been an insolvent under administration, include in an annexure —

(a)the date on which the applicant was declared bankrupt, the district in which the applicant was declared bankrupt and the applicant’s bankruptcy number; or

(b)where the applicant has entered into a deed of arrangement or assignment or where the applicant’s creditors have accepted a composition under Part X of the Bankruptcy Act 1966 —

(i)the district in which the deed of arrangement or assignment was entered into or the composition accepted;

(ii)the date of the deed of arrangement or assignment or the special resolution accepting the composition;

(iii)the full name and the address of the trustee of the deed of arrangement or assignment or of the composition; and

(iv)the identifying number used in relation to the deed of arrangement or assignment or the composition in the office of the Registrar in Bankruptcy.

(2)Include any formal qualifications obtained, or course of training undertaken, by the applicant and the name of the institution that granted the qualification or conducted the course.

Annex copies of supporting documentation.

(3)A conviction for an offence is not necessarily an impediment to the granting of a licence.

DIRECTIONS

1. Where there is insufficient space on this form to provide the required information, show the information in a separate annexure. The requirements relating to annexures are set out in regulation 5 of the Futures Industry Regulations.

2. Annex a detailed statement, made up as at a date not earlier than 14 days before the date of this application, signed by the applicant and disclosing the applicant’s total liabilities together with details of the applicant’s assets in accordance with the following provisions of these directions.

3. Where the applicant’s total tangible assets (excluding the value of any membership of a futures exchange or a futures association or of any stock, securities or other trading exchange) —

(a)exceed the applicant’s total liabilities (including liabilities of a contingent nature) by $50,000 or more, give in that statement full particulars (including the basis of valuation) of those assets up to an amount which exceeds those liabilities by not less than $50,000; or

(b)do not exceed the applicant’s total liabilities (including liabilities of a contingent nature) by $50,000 or more, give in that statement full particulars (including the basis of valuation) of all of the applicant’s assets.

4. Where any of the disclosed assets are vested in the applicant and any other person, or are encumbered in any manner, give in that statement full particulars of the vesting or encumbrance.

5. Give in that statement full particulars of the applicant’s liabilities —

(a)in the case of liabilities (excluding liabilities of a contingent nature) — expressed in terms of the time when they will fall due, as follows:

(i)due not later than in one year’s time;

(ii)due later than in one year’s time but not later than in 3 years’ time; or

(iii)due later than in 3 years’ time; and

(b)in the case of liabilities of a contingent nature — expressed separately in terms of the time when they would be most likely to fall due, as follows:

(i)due not later than in one year’s time;

(ii)due later than in one years’ time but not later than in 3 years’ time; or

(iii)due later than in 3 year’s time.

6. Where the applicant is a partner in a firm, a reference in these directions to the applicant’s assets and liabilities includes a reference to such part of the assets and liabilities of the firm as does not exceed the applicant’s proportional interest in the firm’s business under the partnership agreement. Give in the statement the precise extent of the applicant’s interest, under the partnership agreement, in the assets and liabilities of the firm.

7. Annex particulars of the assets and liabilities of the applicant’s business in the form of —

(a)the last audited profit and loss account and balance sheet (including every document required by law, or by the committee of the futures exchange of which the applicant is a member, to be attached to that account and balance sheet); or

(b)in the case of an applicant who is unable to comply with paragraph (a), a profit and loss account and balance sheet —

(i)prepared in accordance with the approved accounting standards, within the meaning of sub-section 266 (1) of the Companies Act 1981, with which the applicant would be required to comply if the applicant were a body corporate;

(ii)prepared in accordance with the Australian Accounting Standards published by the Institute of Chartered Accountants in Australia or the Australian Society of Accountants except to the extent (if any) to which those Standards are inconsistent with the standards referred to in sub-paragraph (i); and

(iii)signed by the applicant or, where the applicant is a partner in a firm, by all the partners of the firm.

8. If the profit and loss account and balance sheet of the applicant’s business are made up as at a date earlier than 14 days before the date of this application, annex a report signed by the applicant, or where the applicant is a partner in a firm by all the partners of the business to which the accounts relate, stating, in respect of the interval between the date as at which the balance sheet has been made up and a date not earlier than 14 days before the date of this application, that due inquiry has been made by the person or persons signing the report, and setting out whether or not in the opinion of the applicant or those partners —

(a)there have arisen in relation to the business any circumstances adversely affecting trading or the value of the assets or the ability of the business to meet liabilities as they fall due and providing full details of any such circumstances;

(b)the current assets appear in the balance sheet of the business at valuations which are believed to be realisable in the ordinary course of business and providing full details of any such assets that are not so realisable; or

(c)there have arisen any liabilities of a contingent nature including those arising under any guarantee given by the applicant or any of the partners and providing full details of any such liabilities.

NOTICE OF RELEVANT STATUTORY PROVISION

Subsection 142 (1) of the Futures Industry Act 1986 provides —

A person shall not, in, or in connection with, an application for a licence —

(a)make a statement that is false or misleading in a material particular knowing it to be false or misleading; or

(b)omit to state any matter or hing knowing that by reason of that omission the application is misleading in a material respect.

Penalty: $2,500 or imprisonment for 6 months, or both.”.

Form 4 Futures Industry

(subsection 65 (1))

(subregulation 17 (1))

APPLICATION BY A BODY CORPORATE FOR A FUTURES BROKER’S LICENCE OR A FUTURES ADVISER’S LICENCE

Application is made for a *futures brokers’s licence/*futures adviser’s licence and the following statements are made in respect of the application:

1.(a) The name of the applicant is — ..................................................

Company Registration No. .........................................................

(b)The *name/*names under which the applicant proposes to carry on business (if different from the above name) *is/*are — .....................................................................................................

(c)The registered office of the applicant is situated at —

..................................................................................................

State or Territory ....................................... Postcode...............

Telephone No. ........................................... (Specify STD code)

Telex No. .................................................................................

Facsimile No. ...........................................................................

*(d)The applicant’s postal address (if different from the above address) is —

..................................................................................................

State or Territory ..................................... Postcode.................

Telephone No. ........................................... (Specify STD code)

(e)The applicant’s place of incorporation is —

................................................................................................

(f)The address of the principal place at which the business of the applicant *is/*is to be carried on is —

State or Territory ..................................... Postcode.................

Telephone No. ........................................... (Specify STD code)

Telex No. .................................................................................

Facsimile No. ...........................................................................

(g)The addresses of all other places, whether within Australia or elsewhere, at which the business of the applicant *is/*is to be carried on are —

..................................................................................................

State, Territory or country....................... Postcode.................

Telephone No ............................................ (Specify STD code)

Telex No. .................................................................................

Facsimile No. ...........................................................................

..................................................................................................

State, Territory or country....................... Postcode.................

Telephone No. ........................................... (Specify STD code)

Telex No. .................................................................................

Facsimile No. ...........................................................................

(Indicate clearly those places established and those to be established)

(h)Particulars of the directors and secretaries, and the principal executive officer (if any), of the applicant are as follows:

Full name

Residential address (including name of State or Territory and postcode)

Date of birth

Office held

Date of appointment to office

2.The nature of the principal business of the applicant is —

..............................................................................................................

3.The activity for which the applicant requires a licence is —

..............................................................................................................

(Specify in detail)

4. The applicant intends to deal in all kinds/the following kinds of futures contracts:

..............................................................................................................

5. Particulars of each person who, directly or indirectly, exercises, or has or will have power to exercise, a controlling influence over the management and policies of the business of the applicant (other than those persons shown as directors) are as follows:

Full name .............................................................................................

Address (including State or Territory and postcode)

..............................................................................................................

Telephone No. ....................................................... (Specify STD code)

Full name .............................................................................................

Address (including State or Territory and postcode)

..............................................................................................................

Telephone No. ....................................................... (Specify STD code)

6. Is any person who is a director or secretary, or the principal executive officer, of the applicant a director of any other body corporate or bodies corporate, whether incorporated in the Territory or elsewhere?

.................. Answer *Yes *No

If the answer is “Yes”, specify the following particulars in respect of each such person who holds such a directorship:

Full name of person

Full name of other body corporate

Place of incorporation of other body corporate

Date of appointment of person as director of other body corporate

7. Answer the questions “Yes” or “No” in the space provided. If an answer is “Yes”, attach annexures giving all relevant particulars.

Within the past 10 years has the applicant, any person referred to in Item 5 or any director, secretary or principal executive officer of the applicant, whether in Australia or elsewhere —

ANSWER

(a)     held a licence or been registered in any place other than in the Territory under any law which requires licensing or registration in relation to dealing in futures contracts or acting as a futures adviser?

.....................

         (b)     held a licence or been otherwise authorised by law to carry on any trade, business or profession?

..................... .....................

         (c)     been affected in the right to carry on any trade, business or profession for which a specific licence, registration or other authority is required by law?

.....................

         (d)     been a member, or partner in a member firm, of any futures exchange or futures association or of any stock, securities or other trading exchange?

.....................

         (e)     dealt in futures contracts on its, his or her own account?

.....................

         (f)     been an agent, employee or officer of, a representative of, or a partner, or other participant, in a business that dealt in futures contracts on its own account?

.....................

         (g)     been affected by disciplinary measures (including suspension or removal from membership) imposed by any futures exchange, futures association, stock, securities or other trading exchange or professional body?

.....................

         (h)     been refused membership of any futures exchange or futures association or of any stock, securities or other trading exchange or professional body?

.....................

         (i)     carried on business under any name other than the name or names shown in this application?

.....................

         (j)     been known by any name other than the name or names shown in this application?

.....................

         (k)     had judgment (including findings in relation to fraud, misrepresentation or dishonesty) given against it, him or her in any civil proceedings? (If the answer is “Yes”, using an annexure, give full details, including whether or not the judgment is unsatisfied)

.....................

         (l)⁽¹⁾   been an insolvent under administration? .....................

         (m)    been convicted of any offence, other than a traffic offence?

.....................

         (n)     been the subject of any proceedings which are pending and which may lead to a conviction for an offence, other than a traffic offence?

.....................

         (o)     been wound up, had a receiver or a receiver and manager appointed, been under official management or entered into a compromise or scheme of arrangement?

.....................

         (p)     been engaged in the management of any bodies corporate other than those referred to in Item 6?

.....................

         (q)     been refused a fidelity or surety bond or professional indemnity insurance?

.....................

8. *Each of the following persons, being a director or secretary, or the principal executive officer (if any), of the applicant, has had experience in performing the functions of a futures broker, a futures adviser, a futures broker’s representative or a futures adviser’s representative:

1. ...............................................................................................................

2. ...............................................................................................................

3. ...............................................................................................................

In relation to each of those persons, attach an annexure giving full particulars of the relevant experience.

*None of the persons who are directors or secretaries, or the principal executive officer, of the applicant has had experience in performing those functions.

9. Is the applicant a member of a futures exchange or futures association? Answer *Yes/*No.

If the answer is “Yes” —

(a)specify the name of the futures exchange or futures association:

(b)specify the class or classes of that membership:

(c)specify the applicant’s membership number or numbers:

(d)state whether the applicant is permitted to deal in all kinds of futures contracts:

(e)if the applicant is permitted to deal only in certain kinds of futures contracts, specify those kinds:

10. Particulars of the employment and business activities, during the past 5 years, of the directors and secretaries, and the principal executive officer (if any), of the applicant are as follows:

If self-employed, so state.

Full Name of person

Full name of employer

Address of employer (including State or Territory and postcode)

Nature of business of employer

Nature of employment or activity

Dates of commencement and conclusion of each employment or activity

11⁽²⁾. Additional information that is relevant to this application is as follows:

...................................................................................................................

3.⁽¹⁾ *I/*We certify that the above profit and loss account and balance sheet have, to the best of *my/*our knowledge and belief, been drawn up to comply with the requirements of subsection 95 (2) of the Futures Industry Act 1986.

...................................................................................................................

................................................................................................................ ⁽²⁾

*Licensee/*Partners in the firm of..............................................................

futures broker(s).

Dated 19 .

AUDITOR’S REPORT⁽³⁾

In *my/*our opinion, the futures broker’s accounts referred to above *show /*do not show a true and fair view of the broker’s position at................................................................................

and of the profit or loss of the broker for the year in accordance with —

(a)the approved accounting standards within the meaning of subsection 266 (1) of the Companies Act 1981; and

(b)the Australian Accounting Standards published by the Institute of Chartered Accountants in Australia or the Australian Society of Accountants except to the extent (if any) to which those Standards are inconsistent with the standards referred to in subparagraph (a).

Dated 19 .

..............................................

Signature(s) of the auditor(s)

* Strike out whichever is inapplicable.

NOTES

Strike out all the alternatives in paragraphs 1, 2 and 3 which are inapplicable.

All partners to sign.

If an auditor is not satisfied about any matter, state the auditor’s reasons for not being so satisfied.

Form 15 Futures Industry

(subsection 95 (2))

(subregulation 26 (1))

PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF A FUTURES BROKER THAT IS A BODY CORPORATE

The full name of the futures broker is — ........................................................

The number of the futures broker’s licence held by the futures broker

is — .................

1. The annexed balance sheet, profit and loss account and notes are a true copy of the audited accounts of ................for the financial year ended ................. and the attached auditor’s report is a true copy of the auditor’s report on those accounts.

2. The annexed accounts referred to above have been drawn up in accordance with —

(a)the approved accounting standards within the meaning of subsection 266 (1) of the Companies Act 1981; and

(b)the Australian Accounting Standards published by the Institute of Chartered Accountants in Australia or the Australian Society of Accountants except to the extent (if any) to which those Standards are inconsistent with the standards referred to in subparagraph (a).

3. The following supplementary information is submitted in support of the annexed balance sheet and profit and loss account.

Last financial year
$ This financial year
$

Balance sheet —

4. Assets —

(a)Bills of exchange: show separately

bills to mature within —

30 days

90 days

180 days

Bills of exchange to mature over

180 days

(b)Debtors —

Amounts owed by —

Futures brokers (less provision for

doubtful debts this financial year

$ ...........last financial year $ ............)

Clients (less provision for doubtful

debts this financial year

$ ........last financial year $ ..........)

Other debtors (less provision for

doubtful debts this financial yea

$......................... last financial year

$ ........................ )

(c)Loans and deposits —

At call

Other (show current and non-current separately)

(d)Cash at bank —

General accounts

Clients’ segregated accounts

Liabilities —

5.(a) Bills of exchange — show

separately bills to mature within —

30 days

90 days

180 days

Bills of exchange to mature over 180 days

(b)Creditors —

Amounts owed to —

Futures brokers

Clients

Other creditors

(c)Loans and deposits —

At call

Other (show current and non-current separately)

Profit and loss account —

6.(a) Revenue —

Profit (losses) from dealing in futures contracts

Commission from dealing in futures contracts and brokerage (if any) from other trading activities

Underwriting commission

Profit (losses) from trading other than by dealing in futures contracts

Dividends

Interest

Other

Total revenue —

(b)Less expenses —

Bad debts written off

Amount provided for doubtful debts

Interest

Other expenses

Total expenses

(c)Operating profit before income tax —

Less income tax *expense/*provision applicable to that profit

Operating profit

Extraordinary items (net of income tax where applicable)⁽¹⁾

Operating profit and extraordinary items for the financial year

Contingent liabilities and capital commitments —

(a)Contingent liabilities —

Underwriting

Sub-underwriting

Less amounts covered by sub-underwriting with other persons

Other (specify)

(b)Capital commitments (specify)

Standby credit facilities — show for each facility —

(i)amount

(ii)type

(iii)source

(iv)terms and availability

Subordinated loans — show for each loan —

(i)amount

(ii)source

(iii)duration

10. Foreign exchange exposure — to the extent not disclosed in the attached accounts show the gain or loss that would be realised at prevailing rates of exchange.

11. The transactions conducted by the futures broker during the financial year —

(a) were without exception on the broker’s own account; or

(b) included transactions on account of persons other than the broker.

12. The assets and liabilities of each company controlled by the futures broker or any other venture in which the broker has a financial interest *are/*are not in our opinion such as to affect adversely to a material extent the broker’s financial position.

13. Liquid capital —

Securities listed on a stock exchange (at market value this financial year $ last financial year $ )

Amounts owed by —

Futures brokers

Clients

Others

Sundry debtors (after providing for doubtful debts)

Prepayments

Other liquid capital (specify)

Less total liabilities

TOTAL LIQUID FUNDS

14. CHECKING GUIDE (USE IS OPTIONAL)

(a) The name of the futures broker is ......................................................

.....................................................................................................

(b)The futures broker’s licence No. is ...................................................

(c)Accounts have been lodged for year ending ....../....../19......

(d)Extension for lodging accounts has been granted

to....../....../19.....

Forms lodged — Checked

(a)Annual statement (Form 9) *Yes *No

(b)Annual accounts (Form 15) *Yes *No

(c)Auditor’s report (Form 16) *Yes *No

If required form not checked and in order, give particulars.

(1) Current assets (as in balance sheet) $

Current liabilities $

Working capital $

Non-current liabilities $ Total

liabilities

$
Deduct any assets not allowed in

liquid funds calculation $

Add any additional assets in

liquid funds calculation $ Percentage

to total

liabilities

................%

Liquid funds $

Non-liquid assets excluding

amounts under (6) above $

Amounts deducted under (5) above $

Net tangible assets $

Intangible assets $

Percentage

to total

liabilities

................%

Shareholders’ funds $

Comments:

Auditor’s report: (Form 16):

(Details of any qualifications, etc)

Remarks by examining officer:

.....................................

Examining officer

.....................................

Date

We certify that the above information is to the best of our knowledge and belief true and correct.

Dated 19 .

.....................................

Director

AUDITOR’S REPORT ⁽²⁾

*I/*We report that in *my/*our opinion the above statement relating to the accounts of ⁽³⁾

futures broker, has been properly drawn up so as to provide the information required by the Futures Industry Regulations.

In *my/*our opinion, the attached futures broker’s accounts referred to above *are/*are not properly drawn up in accordance with the provisions of the Companies Act 1981 to show a true and fair view of the broker’s position at .................................................. and of the profit or loss of the broker for the year in accordance with —

(a)the approved accounting standards within the meaning of subsection 266 (1) of the Companies Act 1981; and

(b)the Australian Accounting Standards published by the Institute of Chartered Accountants in Australia or the Australian Society of Accountants except to the extent (if any) to which those Standards are inconsistent with the standards referred to in subparagraph (a).

Dated 19 .

.................................................

Signature(s) of the auditor(s)

* Strike out whichever is inapplicable.

NOTES

(1) Attach list detailing gains and losses separately and any income tax obligations.

(2) If an auditor is not satisfied about any matters, state the auditor’s reasons for not being so satisfied.

(3) Insert the name of the futures broker.

Form 16 Futures Industry

(subsection 95 (2))

(subregulation 26 (2))

AUDITOR’S REPORT ⁽¹⁾ ON THE PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF A FUTURES BROKER

FINANCIAL YEAR ENDED: 19 .

1. The full name of the futures broker is or the full names of the partners of the futures broker are —

.................................................................................................................

2. The full name(s) of the auditor(s) *is/*are — ..............................

.................................................................................................................

Registered company auditor registration No. ........................................

.................................................................................................................

3. *I/*We have inspected the futures broker’s licence(s) held by the futures broker(s) and noted any conditions or restrictions on it (them), and any applicable conditions or restrictions prescribed by regulations under the Futures Industry Act 1986.

4. On the basis of *my/*our check or test examination and inquiries, *I am/*we are of the opinion that⁽²⁾ —

(a)the accounting and other records kept by the broker *comply/*do not comply with sections 86 and 90 of the Futures Industry Act 1986;

(b)the internal accounting control procedures of the broker are *adequate/*inadequate having regard to the nature and size of the business of the broker;

(c)the clients’ property *has/*has not been dealt with by the broker in accordance with sections 86 and 91 of the Futures Industry Act 1986;

(d)property held for sale or for safe custody (or any other purpose) or purchased for clients and paid for by them has been held *encumbered/*unencumbered by the broker;

(e)the clients’ segregated accounts *have/*have not been maintained at all times during the financial year in accordance with section 86 of the Futures Industry Act 1986;

(f)the accounting in respect of those segregated accounts is *adequate/*inadequate;

(g)the broker *has/*has not properly held or disposed of all property received by the broker;

(h)the internal procedures designed to ensure compliance with all the conditions or restrictions applicable to the broker’s licence are *adequate/*inadequate;

(i)the broker *has/*has not maintained the required level of net tangible assets in connection with the broker’s business of dealing in futures contracts;

(j)the broker *has/*has not kept proper records of deposits and margins received from the clients of the broker;

(k)the broker *has/*has not dealt with those deposits and margins in accordance with the business rules of the futures exchange or futures association of which the broker is a member;

(l)the broker *has/*has not properly calculated and dealt with the excess funds (if any) of the broker’s clients;

(m)the broker *has/*has not kept proper records of or relating to those clients’ acknowledgments, agreements and consents that are required by or under the Futures Industry Act 1986 to be obtained by the broker with respect to dealings in futures contracts;

(n)the broker *has/*has not kept proper records of money and other property held by the broker on behalf of the broker’s clients;

(o)the broker *has/*has not kept records of commissions received by the broker in relation to dealings by the broker in futures contracts;

(p)no *matter/*other matter has arisen during the financial year which would have required *me/*us to report to the Commission pursuant to section 97 of the Futures Industry Act 1986 (reference should be made to any report made in accordance with that section identifying the date of the report and the provisions of the Futures Industry Act 1986 to which the report refers); and

(q)all conditions and restrictions of a financial nature applicable to the broker’s licence *have/*have not been complied with.

5. The check or test examinations referred to in this report, the audit of the accompanying balance sheet of the broker as at ..................................................................................... ⁽³⁾ ,

the profit and loss account for the year ended on that date and notes *have/*have not been carried out in accordance with the Australian Auditing Standards and Practices promulgated by the Institute of Chartered Accountants in Australia or the Australian Society of Accountants and *included/*did not include such tests of the accounting records and such other auditing procedures as *I/*we considered necessary.

6. *Client(s) placed no restriction on the scope of the audit and all the information and explanations required were received. *The client(s)/*A client restricted the scope of the audit and all the information and explanations required were not received⁽⁴⁾.

Dated 19 .

............................................

Signature(s) of the auditor(s)

* Strike out whichever is inapplicable.

NOTES

(1) Where any part of this report is qualified, attach a separate comprehensive report.

(2) Strike out whichever alternative in each of paragraphs (a) to (p) is not applicable.

(3) Insert the date of the balance sheet.

(4) If this statement is applicable, give on a separate annexure details of client or clients who restricted the scope of the audit and the ways and circumstances in which the audit was restricted.

Form 17 Futures Industry

(subsection 119 (1))

(regulation 28)

NOTICE CALLING FOR CLAIMS AGAINST THE FIDELITY FUND OF A RELEVANT ORGANISATION

In the matter of ................................................................................................

..........................................................................................................................

of ......................................................................................................................

in the ................................................................................................................

Notice is given that all persons claiming to have suffered pecuniary loss by reason of a defalcation or fraudulent misuse of money or other property by the above-named, ........................ or by any of that person’s employees, in relation to any money or other property entrusted to or received by that person or by any of that person’s employees are required to deliver to the relevant organisation, namely, .............................................. ⁽¹⁾

particulars of their claims for compensation from the fidelity fund of that relevant organisation, in writing, on or before the......................................................................... day of ......19......

Subject to section 119 of the Futures Industry Act 1986, claims not received by the Committee of that relevant organisation on or before that date will not be admitted and no payment in respect of any such claims will be made from that fidelity fund.

For the ⁽¹⁾ .........................................................................................................

..........................................................................................................................

Date / /19 .

NOTE

Insert the name and address of the relevant organisation.

Form 18 Futures Industry

(subsection 120 (4))

(regulation 29)

NOTICE OF DISALLOWANCE OF A CLAIM AGAINST THE FIDELITY FUND OF A RELEVANT ORGANISATION

In the matter of ..............................................................................................

........................................................................................................................

the committee of ⁽¹⁾ .......................................................................................

has considered your claim against the relevant organisation,

namely: ⁽¹⁾ .....................................................................................................

for compensation from the fidelity fund of that relevant organisation in respect of pecuniary loss alleged to have been suffered from a defalcation or fraudulent misuse of money or other property by the above-named *member/*partner in a member firm of this organisation of by any of the *member’s/*partner’s employees.

The committee has decided, that having regard to all available evidence, the claim should be *disallowed/*partly disallowed to the extent set out below and you are notified accordingly.

Dated 19 .

Signed .....................................................

for the relevant organisation. ⁽¹⁾

(Include further details as appropriate)

.................................................................................................................

* Strike out whichever is inapplicable.

NOTE

(1).... insert the name and address of the relevant organisation.

Form 19 Futures Industry

(subsection 149 (1))

(subregulation 33 (2))

PENALTY NOTICE

TO: ................................................

.................................................

.............................................. ⁽¹⁾

It is alleged at ⁽²⁾ ................................................................................

on ⁽³⁾ ......................................................................................... 19........... you

committed an offence against —

*(a)section 73 of the Futures Industry Act 1986 (failure to give particulars to the National Companies and Securities Commission of a change in particulars of the holder of a licence);

*(b)subsection 74 (1) of the Futures Industry Act 1986 (failure by a futures broker or a futures adviser to lodge with the National Companies and Securities Commission an annual statement within the required period);

*(c)subsection 74 (2) of the Futures Industry Act 1986 (failure by the holder of a representative’s licence to lodge with the National Companies and Securities Commission an annual statement within the required period);

*(d)subsection 95 (2) of the Futures Industry Act 1986 (failure by a futures broker to prepare accounts and to lodge them with the National Companies and Securities Commission before the prescribed day);

*(e)subsection 95 (4) of the Futures Industry Act 1986 (failure to comply with the conditions subject to which an extension of time for the preparation and lodgment of accounts by a futures broker has been granted).

*That offence/*Those offences *is/*are a *prescribed offence/ *prescribed offences for the purposes of section 149 of the Futures Industry Act 1986 and may therefore be disposed of in accordance with the procedure laid down in that section.

You may dispose of this matter —

(a)by —

(i)paying the prescribed penalty within 21 days of the service of this notice; and

(ii)complying with the requirements of the section or sub-section under which the offence is alleged to have been committed; or

(b)by taking no action and awaiting the institution of court proceedings against you for the alleged offence.

Payment of the prescribed penalty may be made —

(a)by delivering the amount of the penalty to the ............................. ⁽⁴⁾

between.......................... and.......................... on any day other than Saturday, Sunday or a public holiday; or

(b)by posting that amount to the ................................. ⁽⁵⁾ at the address

mentioned in paragraph (a).

Payment must be accompanied by this form.⁽⁷⁾

Cheques and money orders must be crossed, marked “NOT NEGOTIABLE” and made payable to the ⁽⁵⁾

Cash should not be posted. Part payment of the prescribed penalty will not be accepted.

If it is claimed that the relevant documents have been lodged with the ........................... ⁽⁵⁾ already, please state —

(a)the receipt number .....................................................................; and

(b)the date on which the receipt was issued ...... /...... /19.. ..

YOU ARE STILL REQUIRED TO COMPLY WITH THE REQUIREMENTS OF THE SECTION OR SUB-SECTION UNDER WHICH THE PRESCRIBED OFFENCE IS ALLEGED TO HAVE BEEN COMMITTED, i.e. you are required —

..............................................................................................................

....................................................................................................... ...⁽⁶⁾

Issued by .......................... on behalf of the National Companies and Securities Commission on .........19.................................................................................. .

* Strike out whichever is inapplicable.

NOTES

Insert the name and address of the alleged offender.

Insert the place of the alleged offence.

Insert the date of the alleged offence.

Insert the name and address of the Corporate Affairs Commission for the Territory.

Insert the name of the Corporate Affairs Commission for the Territory.

Specify the action required to be taken in order to comply with the relevant section or subsection of the Futures Industry Act 1986.

Payment of the prescribed penalty is not an admission of liability — see subsection 149 (5) of the Futures Industry Act 1986.

Schedule 3 Allowances and expenses of person required to attend for examination

(subsection 25 (12))

(regulation 15)

1. A person who attends for examination before an inspector to give evidence because of the person’s professional, scientific or other special skill or knowledge is entitled to be paid an allowance of not less than $45 and not more than $250 for each day on which the person so attends.

2. A person, other than a person referred to in Item 1 of this Schedule, who attends for examination before an inspector to give evidence or to produce documents is entitled to be paid —

(a)if the person is remunerated by wages, salary or fees —

(i)an allowance equal to the amount of wages, salary or fees lost by reason of so attending; or

(ii)an allowance of $50 for each day on which the person so attends,

whichever is the less; or

(b)if the person is not so remunerated — an allowance of $30 for each day on which the person so attends.

3. A person who attends for examination before an inspector to give expert advice shall be paid, in addition to any other allowance payable to the person under Item 1 or 2 of this Schedule, a reasonable allowance for attending to give that advice.

4. A person who attends for examination before an inspector to give evidence or to produce documents is entitled to be paid a reasonable amount —

(a)in respect of the expense of the person’s transport to and from the place at which the person so attends; and

(b)if the person is required to be absent overnight from the person’s usual place of residence — in respect of the person’s expenses for meals and accommodation.

Schedule 4 Prescribed offences and prescribed penalties

(subsection 149 (1))

(subregulation 33 (1))

Column 1 Item	Column 2 Provision of the Act	Column 3 Prescribed penalty
1	Section 73	$125
2	Subsection 74 (1)	$125
3	Subsection 74 (2)	$125
4	Subsection 95 (2)	$125
5	Subsection 95 (4)	$125

Notes to the Futures Industry Regulations

Note 1

The Futures Industry Regulations (in force under the Futures Industry Act 1986) as shown in this compilation comprise Statutory Rules 1986 No. 150 amended as indicated in the Tables below.

Table of Statutory Rules

Year and number	Date of notification in *Gazette*	Date of commencement	Application, saving or transitional provisions
1986 No. 150	30 June 1986	1 July 1986 (see Gazette 1986, No. S306)
1987 No. 111	15 June 1987	15 June 1987	—
1988 No. 341	21 Dec 1988	1 Feb 1989	—
1989 No. 300	31 Oct 1989	1 Nov 1989 (see Gazette 1989, No. S345)	—
1989 No. 371	21 Dec 1989	21 Dec 1989	—
1990 No. 41	27 Feb 1990	27 Feb 1990	R. 4 (2)

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
R. 10........................................	am. 1989 No. 300
R. 17........................................	am. 1989 No. 300
R. 18........................................	rep. 1989 No. 300
ad. 1989 No. 371
R. 21........................................	am. 1989 No. 300
R. 22........................................	rs. 1989 No. 300
am. 1990 No. 41
R. 22A.....................................	ad. 1989 No. 371
rep. 1990 No. 41
R. 22B.....................................	ad. 1989 No. 371
R. 22C.....................................	ad. 1989 No. 300
Renumbered.......................... (formerly r. 22A first occurring)	1990 No. 41
R. 37........................................	ad. 1987 No. 111
R. 38........................................	ad. 1987 No. 111
am. 1988 No. 341; 1990 No. 41
Schedule 1.............................	am. 1988 No. 341
rs. 1990 No. 41
Schedule 2.............................	am. 1989 Nos. 300 and 371

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Citations

Futures Industry Regulations (Cth)

Cases Citing This Decision

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(a) held a licence or been registered in any place other than in the Territory under any law which requires licensing or registration in relation to dealing in futures contracts or acting as a futures adviser?	.....................
(b) held a licence or been otherwise authorised by law to carry on any trade, business or profession?	..................... .....................
(c) been affected in the right to carry on any trade, business or profession for which a specific licence, registration or other authority is required by law?	.....................
(d) been a member, or partner in a member firm, of any futures exchange or futures association or of any stock, securities or other trading exchange?	.....................
(e) dealt in futures contracts on the applicant’s own account?	.....................
(f) been an agent, employee or officer of, a representative of, or a partner, or other participant, in a business that dealt in futures contracts on its own account?	.....................
(g) been affected by disciplinary measures (including suspension or removal from membership) imposed by any futures exchange, futures association, stock, securities or other trading exchange or professional body?	.....................
(h) been refused membership of any futures exchange or futures association or of any stock, securities or other trading exchange or professional body?	.....................
(i) carried on business under any name other than the name or names shown in this application?	.....................
(j) been known by any name other than the name or names shown in this application?	.....................
(k) had judgment (including findings in relation to fraud, misrepresentation or dishonesty) given against the applicant in any civil proceedings? (If the answer is “Yes”, using an annexure, give full details, including whether or not the judgment is unsatisfied.)	.....................
(l)⁽¹⁾ been an insolvent under administration?	.....................
(m) been convicted of any offence, other than a traffic offence?	.....................
(n) been the subject of any proceedings which are pending and which may lead to a conviction for an offence, other than a traffic offence?	.....................
(o) been engaged in the management of any bodies corporate other than those referred to in Item 6?	.....................
(p) been refused a fidelity or surety bond or professional indemnity insurance?	.....................