Commonwealth Numbered Acts

FUTURES INDUSTRY ACT 1986 No. 72 of 1986 - SECT 69

69. (1) A licence is subject to-

   (a)  such conditions and restrictions as are prescribed; and

   (b)  subject to section 80, such conditions and restrictions as the
        Commission imposes when granting the licence or at any time while the
        licence is in force.

(2) A futures broker's licence is subject to a condition-

   (a)  that the holder of the licence be, during the currency of the licence,
        a member of a relevant organisation; and

   (b)  that the licence is suspended throughout a period throughout which the
        holder of the licence-

        (i)    is a member of no relevant organisation; and

        (ii)   would, but for the suspension of the holder's membership of a
               relevant organisation, be a member of the last-mentioned
               relevant organisation.

(3) A person whose membership of a relevant organisation is suspended for a
period-

   (a)  shall be deemed, for the purposes of paragraph (2) (a), to be a member
        of that relevant organisation throughout that period; and

   (b)  shall be deemed, for the purposes of paragraph (2) (b), not to be a
        member of that relevant organisation at any time during that period.

(4) Without limiting the generality of sub-section (1), conditions and
restrictions referred to in paragraph (1) (a) or (b)-

   (a)  may include conditions and restrictions relating to the limitation of
        the liability that may be incurred by the holder of a futures broker's
        licence in connection with a business of dealing in futures contracts;

   (b)  may include conditions and restrictions relating to the incurring, and
        conditions relating to the disclosure, of liabilities arising
        otherwise than in connection with a business of dealing in
        futures contracts; and

   (c)  may include conditions and restrictions relating to the financial
        position of the holder of a futures broker's licence, whether in
        relation to the business of dealing in futures contracts carried on by
        the holder of the licence or otherwise.

(5) Without limiting the generality of paragraph (4) (c), a condition of the
kind referred to in that paragraph-

   (a)  may include a condition that the assets of the holder of a futures
        broker's licence include, or do not include, assets of a particular
        kind or kinds; and

   (b)  may include a condition that the sum of the values of the assets of a
        particular kind or kinds included in the assets of the holder of a
        futures broker's licence be not less than, or not greater than, an
        amount ascertained in accordance with the condition.

(6) A condition of the kind referred to in paragraph (5) (b) may provide for
the values of assets of the holder of a futures broker's licence for the
purposes of the application of that condition to be ascertained in a manner
specified in, or determined in accordance with, the condition.

(7) The provision that may be made in a condition referred to in paragraph (5)
(b) for ascertaining the amount referred to in that paragraph may be, but is
not limited to, a provision that that amount shall be-

   (a)  a specified percentage of the sum of the values of all the assets of
        the holder of the futures broker's licence;

   (b)  a specified percentage of the sum of the values of all the assets of
        the holder of the futures broker's licence that are included in a
        specified class or classes of those assets;

   (c)  a specified percentage of the sum of the amounts of all the
        liabilities of the holder of the futures broker's licence; or

   (d)  a specified percentage of the sum of the amounts of all the
        liabilities of the holder of the futures broker's licence that are
        included in a specified class or classes of those liabilities.

(8) A reference in this section to the assets of the holder of a futures
broker's licence shall be construed as a reference to all the assets of the
holder of the licence, whether or not the assets are used in, or in connection
with, the business of dealing in futures contracts carried on by the holder of
the licence.

(9) Subject to section 80, the Commission may, at any time, revoke or vary
conditions or restrictions imposed by the Commission under paragraph (1) (b).

(10) Where the Commission imposes, varies or revokes conditions or
restrictions under this section in relation to a licence granted to a futures
broker, the Commission shall inform in writing-

   (a)  each relevant organisation of which the broker is a member; and

   (b)  each body corporate that is a clearing house for a futures exchange,
        or for a local recognised futures exchange, of which the broker is a
        member, but failure of the Commission to do so does not affect the
        validity of the conditions or restrictions.