Risk Disclosure Notice

This notice is provided to you in compliance with requirements laid down by the Financial Conduct Authority because you are proposing to undertake dealings in contracts for differences in the form of bets with a firm which is carrying on investment business as a bookmaker. It cannot disclose all of the risks and other significant aspects involved in dealing in contracts for differences in the form of bets. Engaging in this type of transaction can carry a high risk. As these transactions differ markedly from normal bets you should not engage in this form of betting unless you understand the nature of the transaction you are entering into and the true extent of your exposure to the risk of loss. The amount that you may win or lose will vary according to the extent of the fluctuations in the price of the sports based index ('the underlying market') on which the bet is based instead of a predeterminable sum when a normal bet is placed. Always remember that previous betting performance is no indicator of future betting performance. For many members of the public, these transactions are not suitable; you should, therefore, consider carefully whether they are suitable for you in the light of your circumstances and financial resources. In considering whether to engage in this form of betting, you should be aware of the following:

  1. The high degree of 'gearing' or 'leverage' is a particular feature of this type of transaction. This stems from the margining system applicable to such bets which generally involves a comparatively modest deposit or margin in terms of the overall contract value, so that a relatively small movement in the underlying market can have a disproportionately dramatic effect on your bet. If the underlying market movement is in your favour, you may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of your entire deposit, but may also expose you to a large additional loss unless you enter into a limited liability contract with the firm. If you deal on a credit basis and, therefore, not subject to initial margin requirements, the extent of your agreed credit facility does not limit your loss or financial liability and you can be subject to margin calls for an amount in excess of your facility. As a consequence the amount of capital you are prepared to place at risk should be sufficient to cover your credit limit and the possibility of subsequent margin calls which will only be made once your credit limit has been exceeded.
     
  2. You may be called upon to deposit a substantial additional margin, at short notice, to maintain your bet. If you do not provide such additional funds within the time required, your bet may be closed at a loss and you will be liable for the resulting deficit.
     
  3. Such transactions will not be undertaken on a recognised or designated investment exchange and, accordingly, they may expose you to greater risks than exchange transactions. The betting structure and betting rules will be established solely by the bookmaker. For example, if you wish to close the bet earlier than the time at which it would otherwise automatically expire, you will have to close it at your bookmaker's quotation which may reflect the premium or discount of the 'underlying market' which when closed can be influenced by the weight of the other client buying or selling with your bookmaker. You will have to close any bet with the same bookmaker with whom it was originally entered into.
     
  4. Where entering into such transactions, your bookmaker must do so under a two-way customer agreement pursuant to the Financial Conduct Authority Conduct of Business rules unless exempted from doing so. You should satisfy yourself that dealing is conducted throughout in strict conformity with that customer agreement and report to the Financial Conduct Authority if you have reason to believe it is not.
     
  5. Prior to placing any bets, you should receive from your bookmaker written confirmation of all transaction or other charges for which you will be liable.
     
  6. As a result of Section 412 of the Financial Services and Markets Act 2000, the bets in this case are enforceable and the bookmaking firm may be sued by you (which is advantageous to you if you win) and may sue you (which is disadvantageous to you if you lose).
     
  7. Your bookmaker is prohibited under Financial Conduct Authority requirements from providing you with investment advice relating to investments or possible transactions or possible investments or from making investment recommendations of any kind. This prohibition is subject to an exception where advice given amounts to the giving of factual market information, in relation to a transaction about which you have enquired, as to transaction procedures, potential risks involved and how those risks may be minimised.
     
  8. Your bookmaker is required to hold your money in segregated trust accounts in accordance with the regulations of Financial Conduct Authority, but this may not afford complete protection.
     
  9. If you deposit collateral as security with your bookmaker, you should ascertain from your bookmaker how your collateral will be dealt with.
     
  10. If you have reason to believe that the bookmaker with which you deal is not acting in accordance with representations that it has made to you, the terms of your customer agreement or the rules of the Financial Conduct Authority, you should report it to: The Financial Conduct Authority Limited, 25 North Colonnade, Canary Wharf, London E14 5HS. Telephone: 020 7676 1000.