ASIC has commenced civil proceedings in the Federal Court of Australia against Camelot Derivatives Pty Limited (Camelot) and its sole director, Mr Neil William King, following an investigation into suspected misleading and deceptive conduct.

ASIC is seeking declarations that Camelot and Mr King of Brighton, Victoria, contravened provisions of the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 by:

• engaging in conduct that was, or is misleading and deceptive, or likely to mislead or deceive
• failing to ensure that the financial services provided by them as covered by Camelot’s Australian financial services (AFS) licence were, or are, provided efficiently, honestly and fairly
• failing to comply with the conditions of the AFS licence, and
• alternatively, that Mr King was an accessory to Camelot’s contraventions.

ASIC is seeking interim and final orders in the proceeding to restrain alleged misleading and deceptive conduct, namely orders restraining Camelot and Mr King from representing that:

• Camelot’s clients have generated significant returns by investing in an options trading market
• Camelot’s clients could generate, or have an expectation of generating, significant returns by investing in an options trading market
• Camelot has experience in implementing a successful strategy, methodology, formula or concept to generate significant returns from investments in an options trading market
• Camelot is able to show potential clients how they can achieve significant returns by investing in an options trading market; and soliciting or enticing any person to invest in an options trading market on the advice or recommendation of Camelot or Mr King, or both.

The proceedings will next be before the Federal Court on 4 February 2011.

Background

Camelot is a Melbourne-based derivatives dealing company specialising in the trading of international index options.

Camelot promotes itself through website, publications and seminars as a specialised derivatives dealer that allows investors to participate in the lucrative options trading market place with minimum effort and in the knowledge that a professional option trader is assisting them to manage all aspects of their trading. Camelot claims that by using its time-tested risk management method, superior returns can be earned in a high risk market.

Editor's note:

This matter has been listed for hearing before Justice Foster of the Federal Court on 16 April 2012