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ISCOVER
By: Staff Reporter
The Australian Securities and Investments Commission has given Centrebet an ultimatum: stop rates betting or prepare to be sued.
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According to BusinessDay, ASIC senior manager Jonathan Coultas 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.
"It has come to the attention of the Australian Securities and Investments Commission that you may be carrying on a financial services business without holding an Australian Financial Services (AFS) licence," the notice reportedly said.
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.
"We believe the financial bets you offer over the ASX 200 share index and RBA interest rate changes may be 'derivatives', as defined in the Corporations Act," the notice read.
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: "We didn't know we were selling derivatives."
"We thought we were taking bets, the same as we do on the outcome of sporting events and elections."
"We've been doing it for two years without complaint. Now ASIC says it has come to its attention."
