Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1213

1213. (1) A futures broker shall:

   (a)  keep such accounting records as correctly record and explain the
        transactions and financial position of the business of dealing in
        futures contracts carried on by the broker;

   (b)  keep accounting records in such a manner as will enable true and fair
        profit and loss accounts and balance sheets to be prepared from time
        to time; and

   (c)  keep accounting records in such a manner as will enable profit and
        loss accounts and balance sheets of the business of dealing in futures
        contracts carried on by the broker to be conveniently and properly
        audited.

(2) Without limiting the generality of subsection (1), a futures broker shall
be deemed not to have complied with that subsection in relation to records if
those records:

   (a)  are not kept in writing in the English language or in such a manner as
        will enable them to be readily accessible and readily converted into
        writing in the English language;

   (b)  are not kept in sufficient detail to show particulars of:

        (i)    all money received or paid by the broker, including money paid
               to, or disbursed from, an account of the kind referred to in
               paragraph 1209 (3) (c);

        (ii)   all dealings in futures contracts made by the broker, the
               charges and credits arising from them, and the name of the
               person on whose behalf each dealing was effected;

        (iii)  all income received from commissions, interest and other
               sources, and all expenses, commissions and interest paid, by
               the broker;

        (iv)   all the assets and liabilities (including contingent
               liabilities) of the broker;

        (v)    all futures contracts to which the broker has become a party as
               a result of trading on the broker's own account;

        (vi)   all futures contracts dealt with by the broker pursuant to
               instructions given by another person, showing who gave the
               instructions;

        (vii)  all property that is property of the broker and in respect of
               which the business rules of a futures exchange authorise the
               making of a futures contract in the futures market of the
               futures exchange, showing by whom the property is held and, if
               held by some other person, whether or not the property is so
               held as security against loans or advances; and

        (viii) all such property that is not property of the broker and for
               which the broker or any nominee controlled by the broker is
               accountable, showing by whom, and for whom, the property is
               held and the extent to which the property is either held for
               safe custody or deposited with a third party as security for
               loans or advances made to the broker;

   (c)  are not kept in sufficient detail to show separately particulars of
        every transaction by the broker;

   (d)  do not specify the day on which or the period during which each
        transaction by the broker took place; or

   (e)  do not contain copies of acknowledgments of the receipts of property
        received by the broker from clients.

(3) Without affecting the operation of subsections (1) and (2), a futures
broker shall be deemed not to have complied with subsection (1) in relation to
records if, in respect of a discretionary account on which the broker
operates, those records are not kept in sufficient detail to show the
particulars that the broker is required to furnish to clients in order to
comply with subsection 1207 (2).

(4) Without affecting the operation of subsection (2) or (3), a futures broker
shall keep records in sufficient detail to show separately particulars of all
transactions by the broker:

   (a)  with, on behalf of, or on the account of, clients of the broker,
        excluding, in a case where the broker carries on business in
        partnership, the partners in the firm;

   (b)  in a case where the broker carries on business in partnership-on the
        broker's own account or with, on behalf of, or on the account of, the
        partners in the firm;

   (c)  in a case where the broker does not carry on business in
        partnership-on the broker's own account;

   (d)  with, on behalf of, or on the account of, other futures brokers;

   (e)  with, on behalf of, or on the account of, representatives of the
        broker; and

   (f)  with, on behalf of, or on the account of, employees of the broker.

(5) An entry in the accounting and other records of a futures broker required
to be kept in accordance with this section, and any matter recorded by a
futures exchange in relation to a member pursuant to subsection 1270 (3) shall
be deemed to have been made by, or with the authority of, the broker or
member.

(6) Where a record required by this section to be kept is not kept in writing
in the English language, the futures broker shall, if required to convert the
record into writing in the English language by a person who is entitled to
examine the record, comply with the requirement within a reasonable time.

(7) Notwithstanding any other provision of this section, a futures broker
shall not be deemed to have failed to keep a record referred to in subsection
(1) by reason only that the record is kept as a part of, or in conjunction
with, the records relating to any business other than dealing in futures
contracts that is carried on by the broker.

(8) If accounting or other records are kept by a futures broker at a place
outside Australia, the broker shall cause to be sent to and kept at a place in
Australia such particulars with respect to the business dealt with in those
records as will enable true and fair profit and loss accounts and
balance-sheets to be prepared.

(9) If any accounting records of a futures broker are kept at a place outside
Australia, the broker shall, if required by the Commission to produce those
records at a place in Australia, comply with the requirement not later than 28
days after the requirement is made.