I think Mr Grech address at AGM gives the strongest hint with what is happening with ASIC. There cannot be anything wrong with the model of revenue recognition, if there was that would have corrected a long while ago an communicated as such at the AGM.
Given hedge funds were clearly questioning cash flows back at the time of review commencing and the strong indication that one of more hedge funds were complicit in complaining to ASIC, it is fair to assume that is the root of the review.
Me Grech said "We are taking a range of actions to mitigate this risk [negative cash flow] and we are confident that we will achieve our financial year guidance and will remain in compliance with our obligations to financiers".
That to me translates as ASIC saying look S&G we accept your business model is reasonable and we accept what you have shown us to reassure that information provided to the investing public is correct; however, presently we need more than a promise we need to see cash coming to back the value based on assets and that your banking covenants will not be breached"
If indeed ASIC are taking that, 'we like what you are doing but show me the money' approach then there is a strong possibility the case remains open until finalising FY16 report [or at least until there is concrete evidence of cash in the bank]
