Ann: Response to ASX Query Letter, page-123

Originallypostedbypastperformer

InresponsetotheOTCapitalissueIwouldsaythis:

Onthesurfaceitdoeslooksuspicious,Iagree.It'salotofrevenuefromoneproviderwhowasthensubsequentlysubjecttolegalproceedingsfromASIC.

However,OTCapitalwasprovidedalicensebyASIC,soatsomepointASICacceptedthatOTCapitalwerefitandpropertoconducttheirstatedbusiness.IfthereisakinkinISX'sduediligenceframeworkforon-boardingclients,theirisanevenbiggerchinkinASIC's.Italsohelpstocementapositionofplausibledeniability,ifASICcouldgetitwrongit'sverylikelyISXcouldalsogetitwrong.

ISXhasreferredASXtoaterminationnoticewithrespecttoOTCapitalandtheotherinvestigatedentities-wehowevercannotseethisduetoconfidentially.ButitappearswearesafetoassumethatISXterminatedit'soperationswhenASICfinallycaughtontotheirimpropriety.

Hi pastperformer

If ISX terminated OT Capital's customer agreement, should they have notified the market and clarified what impact it would have on revenue ?