Stop bets or be sued ASIC threatens
(13 April 2010 – Australia) The Australian Securities and Investments Commission has challenged Centrebet, telling the betting agency to stop rates betting or they will sue.
BusinessDay reported that Jonathan Coultas, a senior manager at ASIC, gave Centrebet written notice that the conduct of allowing betting on whether the Reserve Bank will or will not lift the official cash rate is in breach of the ASIC financial services guidelines.
The written notice reportedly said that it had come to the attention of the Australian Securities and Investments Commission that Centrebet may be carrying on a financial services business without holding an Australian Financial Services (AFS) licence.
ASIC is said to be particularly concerned about the trading in derivatives without an AFS licence, which carries a penalty of up to 2 years imprisonment.
ASIC believes that the financial bets Centrebet offers over the ASX 200 share index and RBA interest rate changes may be 'derivatives', as defined in the Corporations Act, the notice also said.
In response to the notice, Centrebet has removed the ASX 200 and Reserve Bank markets from its website.
Centrebet public relations manager Neil Evans has told BusinessDay that they were unaware they were selling derivatives, adding that the agency only thought they were taking bets, the same as when they do for a sporting event or election outcome.
Centrebet has been doing it for two years without complaint. Now ASIC says it has come to its attention, Mr Evan’s added.
Centrebet pocketed A$30,000 in March when a big spending Australian bet on the outcome of the RBA’s March rates outcome, the decision went in favour of the betting agency.
The written notice reportedly said that it had come to the attention of the Australian Securities and Investments Commission that Centrebet may be carrying on a financial services business without holding an Australian Financial Services (AFS) licence.
ASIC is said to be particularly concerned about the trading in derivatives without an AFS licence, which carries a penalty of up to 2 years imprisonment.
ASIC believes that the financial bets Centrebet offers over the ASX 200 share index and RBA interest rate changes may be 'derivatives', as defined in the Corporations Act, the notice also said.
In response to the notice, Centrebet has removed the ASX 200 and Reserve Bank markets from its website.
Centrebet public relations manager Neil Evans has told BusinessDay that they were unaware they were selling derivatives, adding that the agency only thought they were taking bets, the same as when they do for a sporting event or election outcome.
Centrebet has been doing it for two years without complaint. Now ASIC says it has come to its attention, Mr Evan’s added.
Centrebet pocketed A$30,000 in March when a big spending Australian bet on the outcome of the RBA’s March rates outcome, the decision went in favour of the betting agency.
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