Futures Contracts (iPredict Limited) Declaration and Exemption Amendment Notice 2013

2013/340

Coat of Arms of New Zealand

Futures Contracts (iPredict Limited) Declaration and Exemption Amendment Notice 2013

Pursuant to sections 37(10) and 48B of the Securities Markets Act 1988, the Financial Markets Authority gives the following notice (to which is appended a statement of reasons of the Financial Markets Authority).

Notice

1 Title
  • This notice is the Futures Contracts (iPredict Limited) Declaration and Exemption Amendment Notice 2013.

2 Commencement
  • This notice comes into force on the day after the date of its notification in the Gazette.

3 Principal notice
4 Clause 3 amended (Expiry)
  • In clause 3, replace 31 August 2013 with 31 October 2013.

Dated at Wellington this 26th day of August 2013.

Elaine Campbell,
Head of Compliance Monitoring.


Statement of reasons

This notice, which comes into force on the day after the date of its notification in the Gazette, amends the Futures Contracts (iPredict Limited) Declaration and Exemption Notice 2008 (the principal notice). The effect of the amendment is that the principal notice will expire on 31 October 2013 instead of on 31 August 2013.

The Financial Markets Authority considers that the amendment is appropriate because—

  • it enables iPredict Limited to continue, for a further 2 months, to offer trading in the contracts made on its predictions market. This temporary extension provides further time for consideration of iPredict's application for renewal of the exemption and declaration and enables iPredict to continue operating in reliance on the exemption and declaration pending assessment of its application; and

  • the contracts have the characteristics of futures contracts, in that they are valued by reference to a future outcome and they are settled by a cash payment rather than by the delivery of any goods. Renewing the declaration contained within the principal notice is appropriate and will maintain the legal certainty as to the treatment of the contracts; and

  • the conditions of exemption in the principal notice include requirements that client money is held in a trust account and restrictions on the amounts of money held for individual clients. The conditions continue to provide adequate alternative safeguards for the protection of client money and client property; and

  • the exemption granted to iPredict in the principal notice, as amended by this notice, is not broader than is reasonably necessary to address the matters that give rise to the exemption.


Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 29 August 2013.

This notice is administered by the Financial Markets Authority.