5.2.1. Information gathering on the AFSA’s own initiative

(a) The AFSA or (as the case may be) its officers may, by notice in writing, require an Authorised Market Institution or any Person who is connected to the Authorised Market Institution to provide or produce specified information or information of a specified description, at a specified place and before the end of a reasonable period, in such form and with such verifications or authentications as it may reasonably require.

(b) A Person is connected with an Authorised Market Institution if he is or has at any relevant time been:

• i. a member of the Authorised Market Institution’s group;
• ii. a Controller of the Authorised Market Institution;
• iii. a member of the Governing Body of the Authorised Market Institution; or
• iv. any other member of a partnership of which the Authorised Market Institution is a member.

5.2.2. Ongoing notification obligations

An Authorised Market Institution must deal with AFSA in an open and co-operative manner and keep the AFSA promptly informed of significant events or activities, wherever they are carried on, relating to the Authorised Market Institution, of which the AFSA would reasonably expect to be notified, including but not limited to, any matters that might impair the Authorised Market Institution’s ability to discharge its regulatory functions.

5.2.3. Notification of significant breaches by the Authorised Market Institution or its Employees

An Authorised Market Institution must advise the AFSA immediately if it becomes aware, or has reasonable grounds to believe, that a significant breach by the Authorised Market Institution or any of its Employees of a Rule or any other requirement imposed by the AFSA may have occurred or may be about to occur.

5.2.4. Notification of significant breaches of the Business Rules

An Authorised Market Institution must advise the AFSA immediately if it becomes aware, or has reasonable grounds to believe, that a significant breach by any Person of its Business Rules may have occurred or may be about to occur.

5.2.5. Notification of changes in constitution and governance

An Authorised Market Institution must give notice to the AFSA in the following circumstances, setting out written particulars of the matters concerned and any relevant dates:

• (a) Where an Authorised Market Institution is to circulate any notice or other document proposing any amendment to its memorandum or articles of association or other document relating to its constitution, to:
• i. its shareholders or any group or class of them;
• ii. Persons granted access to its facilities or any group or class of them; or
• iii. any other group or class of Persons which has the power to make that amendment or whole consent or approval is required before it may be made.
• (b) Where an Authorised Market Institution makes an amendment to its memorandum or articles of association, or other document relating to its constitution.
• (c) Where any significant change is made to an agreement which relates to the constitution or to the corporate governance framework or the remuneration structure or strategy of the Authorised Market Institution.

5.2.6. Notification of complaints

Where an Authorised Market Institution has investigated a complaint arising in connection with the performance of, or failure to perform, any of its regulatory functions, and the conclusion is that the Authorised Market Institution should:

• (a) make a compensatory payment to any Person; or
• (b) remedy the matter which was the subject of that complaint, the Authorised Market Institution must immediately notify the AFSA of that event and give the AFSA a copy of the report and particulars of the recommendation as soon as that report or those recommendations are available to it.

5.2.7. Notification of admission to or removal from trading

Where an Authorised Investment Exchange proposes to suspend or remove from trading or admit to trading, by means of its facilities, a class of Security or Unit in a Listed Fund which it has not previously traded, but is licensed to do so, it must give the AFSA notice of that event, at the same time as the proposal is communicated to Persons granted access to its facilities or shareholders, with the following information:

• (a) a description of the Investment to which the proposal relates; and
• (b) the name of any clearing or settlement facility in respect of that Investment.

5.2.8. Notification of removal from or admission to clearing

Where an Authorised Clearing House proposes to cease clearing or settling, or to commence clearing or settling, by means of its facilities, a class of Security, Unit in a Listed Fund, Commodity Derivative, or Environmental Instrument which it has not previously cleared or settled, but is licensed to do so, it must give the AFSA notice of that event, at the same time as the proposal is communicated to Persons granted access to its facilities or shareholders, with the following information:

• (a) a description of the Investment to which the proposal relates; and
• (b) the name of any trading facility in respect of that Investment.

5.3.1. Annual reports and accounts

Authorised Market Institution must give the AFSA:

1. (a) a copy of its audited annual financial statements; and
2. (b) a copy of any audited consolidated annual financial statements of any group of which the Authorised Market Institution is a member;

no later than when the first of the following events occurs:

1. (c) four months after the end of the financial year to which the document relates;
2. (d) the time when the documents are sent to Persons granted access to the facilities or shareholders of the Authorised Market Institution; or
3. (e) the time when the document is sent to a holding company of the Authorised Market Institution.

5.3.2. Audit committee reports

Where an audit committee of an Authorised Market Institution has received a report in relation to any period or any matter relating to any regulatory functions of that Authorised Market Institution, the Authorised Market Institution must immediately give the AFSA a copy of that report.

5.3.3. Quarterly management accounts

An Authorised Market Institution must give the AFSA a copy of its quarterly management accounts within one month of the end of the period to which they relate.

5.3.4. Forward-looking estimates

An Authorised Market Institution must give the AFSA:

• (a) a statement of its anticipated income, expenditure and cash flow for each financial year; and
• (b) an estimated balance sheet showing its position as it is anticipated at the end of each financial year; at least 15 days before the beginning of that financial year.

5.3.5. Fees and charges

An Authorised Market Institution must give the AFSA a summary of:

• (a) any proposal for changes to the fees or charges levied on users of its facilities, or any group or class of them, at the same time as the proposal is communicated to the relevant users; and
• (b) any such change, no later than the date when it is published and notified to relevant parties.