Derivative risk statement and adoption resolution
Product type: Standard template | no legal review or advice
Price:$150.00
This is a template document that requires amendment and as such, it remains the responsibility of the user of this template to review the applicable governing rules of the relevant fund, seek relevant advice and determine if the template is appropriate for their use.
If uncertain as to the use of this template or specifically tailored documentation is required. Please make an enquiry, and our associatesTownsends Lawyers, will be pleased to assist.
This template identifies the circumstances when the Fund may use derivatives as directed by the Trustee. The 15 page document is in two parts:
Part A Derivaties Risk Statement
This document identifies the circumstances when the Fund may use derivatives as directed by the Trustee and should be read in conjunction with Part B of the Statement.
Under Part A, “derivative” means a financial asset or liability whose value depends on (or is derived from) other assets, liabilities or indexes (the “underlying asset”).
Part B - Derivaties Risk Statement
This document summarises the policies and controls in place in relation to use of derivatives by the Trustee for the Fund, and the compliance processes used by the Trustee as part of the existing risk management.
In this Statement, “Derivative” has the meaning set out in the Corporations Act 2001. Derivative transactions include a wide assortment of instruments such as futures, options, share ratios, warrants, swaps, forward rate agreements and other composites. If unsure then the Trustee must treat an instrument as a derivative.
This document covers:
- Derivatives risk statement
- The funds investment and insurance strategy
- Identification of trustee statement
- Trustee authorisation of the use of derivatives
- risk analysis
- external audit
- Additional SIS requirements
For superannuation funds governed by non-SUPERCentral or non-Townsends Business & Corporate Lawyers governing rules, please review the applicable trust deed and governing rules to determine if the template is suitable for the Superannuation Fund
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