(a) a Market Participant that is only approved as a Principal Trader;
(b) a Market Participant that is a Clearing Participant of an Approved Clearing Facility and complies with the capital requirements under the Clearing Rules.
Part 9.2 Risk Based Capital Requirements—Reporting
9.2.1A Risk Based Capital Requirements: Forms
In this Part 9.2:
“Ad Hoc Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 1 in Schedule 1C to these Rules.
“Annual Audited Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules, except for the section "Credit Facilities & Overdraft" (coded "CFO").
“Monthly Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules.
“Risk-Based Return Declaration” means a declaration containing the information in, and in the form set out in, Part 2 of Form 2 in Schedule 1C to these Rules.
“Summary Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules, except for the following sections:
Underwriting Risk Requirement (coded “URR”);
Non Standard Risk Requirement (coded “NRR”); and
Credit Facilities & Overdraft (coded "CFO").
9.2.1 Risk Based Capital Requirements—Ad hoc or Summary Return on Request by ASIC
A Market Participant that is required to comply with the Risk Based Capital Requirements must, if requested to do so by ASIC, provide ASIC with an Ad Hoc Risk-Based Return or a Summary Risk-Based Return and Risk-Based Return Declaration, authorised by one director or partner of the Market Participant, within the time specified by ASIC in the request.
9.2.2 Core Capital or Liquid Capital below minimum
(1) Subject to Rule 9.2.6, a Market Participant that is required to comply with the Risk Based Capital Requirements must notify ASIC immediately if its:
(a) Core Capital is at any time less than the minimum amount required by paragraph S1A.2.1(b); or
(b) Liquid Capital divided by its Total Risk Requirement is equal to or falls below 1.2.
(2) Subject to Rule 9.2.6, a Market Participant must provide ASIC with, at the option of ASIC, an Ad Hoc Risk-Based Return, or a Summary Risk-Based Return and Risk-Based Return Declaration, disclosing the amount of its Liquid Margin:
(a) no later than one Business Day after notifying ASIC under subrule (1); and
(b) from then on, either:
(i) by 10 am on the first Business Day of each week, showing the financial position of the Market Participant on the last Business Day of the prior week, for so long as the amount referred to in paragraph (1)(b) is equal to or less than 1.2 but greater than 1.1; and
(ii) by 10 am on each Business Day, showing the financial position of the Market Participant on the prior Business Day, for so long as the amount referred to in paragraph (1)(b) is 1.1 or less.
(3) The return referred to in subrule (2) must be authorised by one director or partner of the Market Participant.
9.2.3 Monthly Return
(1) Subject to Rule 9.2.6, a Market Participant that is required to comply with the Risk Based Capital Requirements must prepare and deliver to ASIC within 10 Business Days of the end of each calendar month, the following documents and information:
(a) if the Market Participant is not a partnership, a Monthly Risk-Based Return, which accurately reflects the Market Participant’s accounts and financial position on the last Business Day of the previous calendar month;
(b) if the Market Participant is not a partnership, a Risk-Based Return Declaration relating to the Monthly Risk-Based Return, authorised by one director of the Market Participant;
(c) if the Market Participant is a partnership, a Monthly Risk-Based Return, which accurately reflects the Market Participant’s accounts and financial position on the last Business Day of the previous calendar month, or such other alternative form of return as ASIC directs under this paragraph; and
(d) if the Market Participant is a partnership, a Risk Based Return Declaration relating to the Monthly Risk-Based Return, authorised by one partner of the Market Participant, or such other alternative form of declaration as ASIC directs under this paragraph.
9.2.4 Audited Annual Return
(1) Subject to Rule 9.2.6, a Market Participant that is required to comply with the Risk Based Capital Requirements must prepare and deliver to ASIC:
(a) within 3 months following the end of the Market Participant’s financial year if the Market Participant is not a partnership; or
(b) within 2 months following the end of the Market Participant’s financial year if the Market Participant is a partnership,
the following documents and information:
(c) the Market Participant’s statutory accounts, including directors’ declaration and audit report as required under the laws of the Market Participant’s home jurisdiction, which give a true and fair view of the financial position and performance of the Market Participant’s business as at the end of the financial year and which are prepared in accordance with accounting standards and principles which are generally accepted in Australia, unless ASIC determines otherwise;
(d) if the Market Participant is not a partnership, an Annual Audited Risk-Based Return, which accurately reflects the Market Participant’s accounts and its financial position as at the end of the Market Participant’s financial year;
(e) if the Market Participant is not a partnership, a Risk-Based Return Declaration relating to the Annual Audited Risk-Based Return, authorised by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant;
(f) if the Market Participant is a partnership, an Annual Audited Risk-Based Return, which accurately reflects the Market Participant’s accounts and its financial position as at the end of the Market Participant’s financial year, or such other alternative form of return as ASIC directs under this paragraph;
(g) if the Market Participant is a partnership, a Risk-Based Return Declaration relating to the Annual Audited Risk-Based Return, authorised by two partners of the Market Participant, or such other alternative form of declaration as ASIC directs under this paragraph;
(h) an auditor’s report on the Annual Audited Risk-Based Return or the alternative form of return directed by ASIC under paragraph (f), in the form set out in Form 5 in Schedule 1C to these Rules, dated and signed by the audit firm;
(i) a statement (the “Key Risks and Internal Systems Statement”) in the form set out in Form 6 in Schedule 1C to these Rules, dated and signed by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant (the date of the resolution must be specified), or, if the Market Participant is a partnership, by two partners of the Market Participant; and
(j) the Market Participant’s group structure chart showing the Market Participant’s corporate ownership structure starting at the ultimate parent, dropping down to the immediate parent, the Market Participant, any subsidiaries (including nominee companies of the Market Participant) and any related/associated companies of the Market Participant.
(2) Subject to Rule 9.2.6, if the financial year end of the Market Participant is other than 30 June, the Market Participant must notify ASIC of its financial year end.
9.2.5 Partnership Statutory Declaration
Subject to Rule 9.2.6, a Market Participant that is a partnership must give ASIC, within 10 Business Days after the end of June and December each year, for each partner of the Market Participant, a declaration (the “Partnership Statutory Declaration”) in the form set out in Form 7 in Schedule 1C to these Rules, signed by the partner to which the Partnership Statutory Declaration relates and witnessed in accordance with the instructions included on the Partnership Statutory Declaration.
9.2.6 Double Reporting Exemption for Dual APX/Chi-X or APX/ASX Participants
A Market Participant that is also an ASX Participant or a Chi-X Australia Participant does not have to comply with subrule 9.2.2(1), 9.2.2(2), 9.2.3(1), 9.2.4(1) or 9.2.4(2) or Rule 9.2.5 if the Market Participant has complied with the equivalent subrule or Rule in the ASIC Market Integrity Rules (ASX Market-Capital) 2014 or ASIC Market Integrity Rules (Chi-X Australia Market-Capital) 2014.
Part 9.3
Note: There is no Part 9.3.
Part 9.4 General
9.4.1 Alternate Director
Where a Market Participant has appointed an alternate director in accordance with section 201K of the Corporations Act and the constitution of the Market Participant, the alternate director may authorise or sign the Forms referred to in Part 9.2 only if the Market Participant has provided ASIC with:
(a) the details of the appointment of the alternate director; and
(b) a statement that the Market Participant’s constitution permits the appointment of the alternate director.
Part 9.5 Scope of audits
9.5.1 Market Participant to assist auditor
(1) A Market Participant must give its auditor access to its premises and Employees and all records, documents, explanations and other information required by the auditor in respect of any audit conducted under Part 9.2.
(2) A Market Participant must:
(a) not impose any limitation on the extent of any audit required under Part 9.2; and
(b) permit and direct the auditor to notify ASIC immediately if any limitation is imposed on the auditor, or if the auditor is hindered or delayed in the performance of the auditor’s duties.
(3) The records of each of the Market Participant’s nominee companies must be included in the audit.
Part Part 9 - ASIC Market Integrity Rules (APX Market-Capital) 2014 - Accounts and audit | Zoe