FINANCIAL MARKETS TRADING
Date:
To (Client):
From (Investment Manager):
As your investment manager, we enter into financial markets transactions from time to time on your behalf. This term includes the whole range of transactions conducted in the financial markets including derivatives. Examples are interest rate and currency swaps, options and foreign currency transactions, futures contracts and futures options contracts. There may be other types of transactions.
Terms governing financial markets transactions are usually contained in industry standardised documents that we sign with counterparties on your behalf. However, some financial markets transactions may be undocumented. Others may be documented in individually negotiated agreements that we sign with brokers as your agent. To enhance the integrity of the financial markets, the
Australian Financial Markets Association (AFMA) which represent participants in the financial markets recommends that investment managers seek to obtain confirmation from each of their clients, that:
 The investment manager has authority as the client’s agent to enter into:
- industry standardised documents and individually negotiated brokerage agreements
(completed and amended as agreed between the investment manager and the counterparty which may relate to more than client and which may not necessarily be negotiated having regard to the individual circumstances of any particular client) to govern the terms of financial markets transactions; and
- financial markets transactions governed by those documents and confirmations of those transactions and financial markets transactions which are not documented (other than by way of confirmation).

The client is duly constituted and has the power to enter into and perform its obligations in relation to those financial markets transactions, industry standardised documents and individually negotiated brokerage agreements;

If the client purports to transfer property under a financial markets transaction (such as a repo), it is transferred beneficially and free of security interests;
 The client’s obligations in relation to those financial markets transactions, industry standardised documents and individually negotiated brokerage agreements are enforceable;


If the investment manager is acting in connection with a trust or scheme ( Scheme ):
- the client is the sole trustee or responsible entity of the Scheme (or, if there is another trustee, the client has been duly authorised by all trustees of the Scheme to enter into and perform obligations under those financial markets transactions, industry standardised documents and individually negotiated brokerage agreements);
- the client is not in breach of trust;
- the client has the right to be indemnified out of the assets of the Scheme for all obligations that it incurs in relation to those financial markets transactions, industry standardised documents and individually negotiated brokerage agreements;

If the investment manager is acting in connection with a statutory fund of a life company;
- the financial markets transaction relates to the business of the statutory fund.
Signing this schedule will facilitate us entering into financial markets documents and financial markets transactions. By signing this letter you will be taken to:

Represent and warrant to the investment manager and to each counterparty or prospective counterparty or broker with whom the investment manager enters into, or proposes to enter into, transactions as your agent, the matters set out in this letter. These representations are taken to be repeated each time a financial markets transaction, industry standardised document or individually negotiated brokerage agreement is entered into on behalf of the client and every three months thereafter; and

Agree to notify the investment manager of any change in these representations.
You consent to our providing a copy of this letter to counterparties, proposed counterparties to the transactions or brokers and acknowledge that they will rely on these representations and warranties in entering into those financial markets transactions, industry standardised documents and individually negotiated brokerage agreements.
If you do not return this letter we may not be able to enter transactions with at least some counterparties on your behalf.
Signed on behalf of the investment manager:
Signature:
…………………………..
Date: ………………………………….
Name: …………………………..
Signed on behalf of the client:
Authorised person *
Position: ……………………………...

Signature:
…………………………..
Name: …………………………..
Date: ………………………………
Position: ……………………………...
* The Authorised Person must be authorised by the Client to sign this document for and on behalf of the Client