Industry Standard Documentation

AFMA provides access to a range of industry standard documentation for participants in Australia's financial markets.

Debt Capital Markets

Debt Capital Markets Documentation

The "Recommendations for Australian Wholesale Debt Capital Markets Documentation" helps members facilitate and standardise documentation for Australian wholesale debt capital markets issues. It now includes an editable Terms Sheet for market participants to use.

Standard Form Arrangement Letter for International (excluding US) Debt Offers

In connection with the due diligence process for many international debt offers, accounting firms are requested to prepare a "comfort letter" addressed to the underwriters and the issuer's board of directors.  Since 2003, certain accounting firms have sought comparable arrangement letters in connection with international debt offers by Australian Issuers and, in more recent years, have sought to broaden the scope of such letters.  Because the negotiation of arrangement letters can consume undue amounts of time and expense (legal and accounting fees) in some transactions a Standard Form Arrangement Letter for International (excluding US) Debt Offers has been developed through consultation among major investment banks, major law firms and major accounting firms.  This form is designed for use in connection with offers of debt securities by Australian issuers outside the United States.

Equity Capital Markets

Master ECM Terms

The Master Equity Capital Market (ECM) Terms provide industry developed standard terms to streamline the confirmation of institutional allocations on capital raisings in Australia.

Futures

Industry Guide for Futures PDS

Financial services providers who offer futures products to retail clients are required under the Corporations Act 2001 to issue a product disclosure statement (PDS). The industry has developed a generic Futures PDS template to help providers that deal with retail clients to prepare their own PDS.

Market Transactions

AFMA Carbon Benchmark Addendum Explained

This note sets out the purpose and methodology of the Addendum and includes worked examples.

Short Form FX Contract

This simple two-page master agreement can be used in place of the ISDA master agreement. It was developed by the Documentation Committee together with AFMA Partner Member King & Wood Mallesons. If you would like to subscribe to this publication electronically, please contact us.

Confidentiality Terms

The Documentation Committee is pleased to endorse the New York-based Global Documentation Steering Committee (GDSC) Confidentiality Terms (2004)  to help simplify documentation procedures and facilitate financial markets transactions.

AFMA endorses the use of the Confidentiality Terms in Australia to avoid the time and effort involved in negotiating confidentiality agreements. Market participants can adopt these confidentiality terms to achieve mutual commercial objectives, although it is suggested that Australian users consider modifying the terms so that a relevant Australian law governs them. This could be achieved by the simple amendment of replacing clause (4.4).

Financial Markets Trading Letter

The Financial Markets Trading Letter was developed and issued by AFMA, the Australian Bankers' Association (ABA) and the Investment & Financial Services Association (IFSA). Investment management clients can use this letter to authorise their investment manager to enter into industry standardised agreements for financial markets transactions.

Environmental Products Documentation

Johnson Winter & Slattery has prepared this review of Environmental Trading Schemes Operating in Australia.

A contract template for spot purchase/sale of environmental products and an explanatory note prepared by Johnson Winter & Slattery are also available for download – although these are not recommended for use when trading significant volumes or when dealing forward.

Change to Snowy Regional Boundary

Under instructions from the Electricity Committee, solicitor King & Wood Mallesons has prepared a Change to Snowy Regional Boundary guidance note, published 18 May 2007. It sets out a suggested approach market participants should take in relation to this change.

Risk

Key Risk Indicator Definitions & Guidelines

AFMA's Performance Measures Committee has prepared the KRI Definitions & Guidelines document to help members with day-to-day operational issues.