Dated at Wellington this 26th day of August 2013.
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.
Date of notification in Gazette: 29 August 2013.
This notice is administered by the Financial Markets Authority.