ASIC Market Integrity Rules (ASX Market) 2010 - LexisNexis

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LexisNexis ASIC Market Integrity Rules (ASX Market) 2010(2) For the period that commences on the Commencement Date and ends on 1 July in thefollowing year, the Market Participant must ensure that each person that was a ResponsibleExecutive of the Market Participant on the Commencement Date meets the ComplianceEducation Requirements pro-rata to the number of complete months in that period.Maximum penalty: $20,0002.3.5 Annual continuing education and compliance self-assessment(1) Subject to subrule (2), a Market Participant must provide a written notification to ASICby 31 July each year that contains the following information:(a)(b)(c)(d)the name of each person who was a Responsible Executive of the Market Participantduring the period from 1 July in the preceding calendar year to 30 June in the calendaryear in which the notification is provided;if the person was a member of a professional body or bodies during the period referredto in paragraph (a), the name of that body or those bodies;a statement in relation to each person that the Market Participant confirms that, duringthe period referred to in paragraph (a), the person:(i)(ii)has satisfied; orhas not satisfied,as the case may be, each of the requirements of subrule 2.1.4(1) (good fame andcharacter), paragraphs 2.3.1(2)(a) and (b) or (c) (skills, knowledge, experience andqualifications), subrule 2.1.5(2) (Unprofessional Conduct), paragraph 2.3.3(1)(d)(annual representation) and Rule 2.3.4 (continuing education), while the person was aResponsible Executive of the Market Participant during that period;if subparagraph (c)(ii) applies, an explanation of the reason that the person has notsatisfied the requirement.(2) A notification provided under subrule (1) prior to 1 August 2011 need only relate to theperiod from the Commencement Date to 30 June 2011.(3) The Market Participant must retain copies of the records upon which the notification referredto in subrule (1) is based for 7 years from the end of the period to which the notification relates.Maximum penalty: $20,000Part 2.4 Retail Client Adviser Accreditation2.4.1 Accreditation required(1) A Market Participant must ensure that each of its Representatives who provides FinancialProduct Advice to a Retail Client in relation to:(a)Options Market Contracts;Copyright Australian Securities and Investments Commission. Reproduced with permission.
LexisNexis ASIC Market Integrity Rules (ASX Market) 2010(b)(c)Futures Market Contracts; orWarrants,holds the relevant accreditation required by these Rules.(2) A Market Participant must not, and must ensure that a Representative does not, holdhimself or herself out as holding a type of accreditation under these Rules if they do not holdthat type of accreditation.Maximum penalty: $100,0002.4.2 Extent of advice to clients—Level One Accredited Derivatives Adviser(1) A Market Participant must ensure that each of its Representatives who provides FinancialProduct Advice to a Retail Client in relation to:(a)(b)(c)(d)taking Options Market Contracts (other than Futures Options);writing Options Market Contracts (other than Futures Options), but only for the purposeof closing out a position or writing Covered Call Options under paragraph (e);subscribing for and buying and selling Warrants;exercising Warrants and Options Market Contracts (other than Futures Options); and(e) the Covered Call Option writing strategies as set out in Rule 2.4.3,is accredited as a Level One Accredited Derivatives Adviser or a Level Two AccreditedDerivatives Adviser.(2) A Market Participant must ensure that each of its Representatives who is only accreditedas a Level One Accredited Derivatives Adviser does not advise or make recommendations inrelation to LEPOs.Maximum penalty: $100,0002.4.3 Covered Call Option Strategy(1) For the purposes of Rule 2.4.2, “a Covered Call Option” writing strategy entails either:(a)(b)a client who already owns Underlying Financial Products in a particular Class writingCall Options over those Underlying Financial Products up to the number of UnderlyingFinancial Products which the client owns and either prior to, or simultaneously withwriting the Call Options, providing to the Clearing Facility those Underlying FinancialProducts as cover for the written Call Option obligations; ora client buying a particular Class of Underlying Financial Products and simultaneouslywriting Call Options over those Underlying Financial Products on the understandingthat the client will provide, to the Clearing Facility, within 3 Trading Days of enteringinto the strategy, the simultaneously purchased Underlying Financial Products as coverfor the written Call Option obligations.Copyright Australian Securities and Investments Commission. Reproduced with permission.
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ASIC Market Integrity Rules (ASX Market) 2010 - LexisNexis

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