cudeco(cdu) trading - representations, page-336

Hi CDU'ers


The following is the text of a letter I received back from the Hon. Bernie Ripoll, MP, Parliamentary Secretary to the Treasurer, Parliamentaryt Secretary for Small Business, as a result of my representations to him on the 10th March, 2013:-

"Dear Maxw...

Thank you for your email of 10 March 2013 concerning short selling and trading in CuDeco, Lynas Corporation, Billabong Corporation and Echo Entertainment Gropup, and other market practices in Australia.

The Australian Government is concerned by any behaviour that seeks to manipulate the market. Any deliberate attempt to force a security's price to an artificial level is illegal, irrespective of the method(s) employed. The Australian Securities and Investments Commission(ASIC) continuously monitors market activity, in real time, for suspicious trading patterns that could indicate market misconduct. Where such patterns are observed, or if matters are referred to them, ASIC has the power to conduct compulsory investigation of the related parties. If the activity is determined to constitute market abuse, ASIC will pursue appropriate sanctions under the Corporations Act 2001(Corporations Act).

Reflecting the serious nature of such activity, in 2010 the Government substantially increased the penalties for market manipulation offences. For individuals, the penalty is now the greater of $495,000 or three times the profit made or loss avoided. For Corporations, the penalty is now the greater of $4,950,000, three times the profit made or loss avoided, or 10 per cent of the corporation's annual turnover during the period the breach occurred. In addition, the offenders may be imprisoned for up to 10 years.

I note that you have provided further material that you assert indicates that market manipulation is occurring. If you believe that you have evidence that market manipulation has occurred in relation to trading in CuDeco, Lynas Corporation, Billabong Corporation or Echo Entertainment Group, or any other listed entity, this should be reported to ASIC, either through its online eComplaint Form, or by mail to: Australian Securities and Investments Commission, PO BOX 4000, Gippsland Mail Centre, Victoria 3841.

You should note that ASIC is an independent statutory authority established under the Australian Securities and Investments Commission Act 2001(ASIC) and is responsible for the administration and enforcement of the Corporations Act. Under the ASIC Act, I have limited powers to intervene. I am specifically precluded from giving ASIC a direction about its policies or priorities in relation to a particular case in order to ensure that its decisions and actions are, and are seen to be, independent of the political process.

The Government is continuing to work with regulators and market operators to ensure that appropriate safeguards are in place to detect, punish and, where possible, prevent manipulative activity, to ensure that the stablilty of the Australian capital markets are not put at risk.

The Government has taken steps to prevent short selling transactions from damaging the integrity of the market. However short selling is seen as a legitimate market practice by Australian and overseas regulators. While the Government has taken steps to regulate short selling, it does not seek to ban activities that can contribute to the proper function of the market.

That said, if you believe particular instances of short selling are being utilised in market manipulation, I urge you to refer any evidence you may have to ASIC.

I trust this information will be of assistance to you.

Yours sincerely, "


Referred for the information of CDU shareholders concerned. The research continues.

cheers,


Max

Max