EMS, as FTR Manager, will only accept a person as an FTR participant, and will only offer and issue FTRs to that person, if the person meets all of the following requirements:

(a) Meets the prudential requirements in relation to FTRs set out in Part 14 of the Electricity Industry Participation Code 2010 (The Code), as determined by the Clearing Manager under the Code.

(b) Is a natural person resident in New Zealand, a body corporate that is incorporated in New Zealand, or a person with a branch office or other substantial physical presence in New Zealand through which it conducts its FTR participation.

(c) Has provided EMS as FTR Manager with either:

(i) a current and valid eligible investor certificate under clause 41 of Schedule 1 of the Financial Markets Conduct Act 2013 (FMCA) in respect of the issue or sale of FTRs; or

(ii) a current and valid wholesale investor certificate under clause 44 of Schedule 1 of the FMCA.

(d) Is registered by the Electricity Authority as an Industry Participant under section 9 of the Electricity Industry Act 2010 as a trader in electricity.

(e) Agrees to the standard FTR participation agreement, (authorised persons).

Information about FTRs made available by EMS through any medium (FTR information) is not:

(a) advice on, or a recommendation of, FTRs or any other investment, financial product or risk management arrangement;

(b) an offer or solicitation by EMS to issue or deal in FTRs or any other investment, financial product or risk management arrangement; or

(c) directed to any person who is not an authorised person.

Clause 2(c) applies to all FTR information including FTR information that is or may be accessible to persons who are not authorised persons, for example on the Internet or by being distributed outside New Zealand by persons to whom EMS initially made the FTR information available. No recipient of FTR information is authorised to distribute it outside New Zealand.

Prior to any person acquiring, entering into or dealing in any investment, financial product or risk management arrangement they should obtain their own tax, legal and financial advice.

The FTR auction, reconfiguration auction and assignment facilities provided by EMS as FTR Manager are not licensed financial product markets under the FMCA or otherwise. However, those facilities and the FTR Manager are regulated under the Electricity Industry Act 2010, Electricity Industry (Enforcement) Regulations 2010 and Electricity Industry Participation Code 2010.