cudeco(cdu) limited - representations, page-66

Hi CDU'ers,

The following is the text of an email I sent to Hon. Joe Hockey, MP, Treasurer, on the 9th November, 2013, concerning the trading of CuDeco(CDU) Securities on the ASX:

"Dear Hon. Joe Hockey, MP,

Further to my email of the 31st October, 2013, concening the trading of CuDeco(CDU) Limited Securities on the Australian Securities Exchange(ASX), I wish to advise you
that a further update on the "CuDeco Shareholder Research" document has been made available.

It concerns an update to Submission 213 in relation to the Senate enquiry into the performance of the Australian Securities and Investments Commission( ASIC).

The update advises of ASIC’s response to 4 separate complaints forwarded since August 16 this year, and it refers to a new ASIC Complaint about trading issues associated with the selling of a substantial shareholding in CuDeco(CDU) Limited Securities by the M&G Group.

M&G’s impact on trading and the company register has been reviewed from when they bought their holding back in 2010 (i.e., Complaint 2013-2), in the months preceding their decision to dispose of their holding (i.e., Complaint 2013-3), and by the latest research coinciding with the disposal of the holding (i.e., Complaint 2013-4)

Complaint 2013-4 is timely, as it again raises systemic issues that aren’t recognized by the regulator, just as the Senate Committee is looking into their effectiveness. It also comes after revelations about how ASIC has operated in the past, and after clarifications that ASIC sees itself as more responsive to systemic issues than individual cases. It also comes after clarifications by the ASIC Chairman in a recent Lateline interview indicating that ASIC is focussed on retail investors, especially when there is a significant impact on the market and where lots of people lose lots of money.

The CuDeco example provides an excellent case study to monitor ASIC’s effectiveness while the Senate Committee addresses regulatory concerns generally.

It is an excellent case study because:

· the same trading behaviours evident with CuDeco are repeated right across the ASX;

· around half a billion dollars was unfairly erased from the Company’s market capitalization; and

· over 7,000 retail investors have been impacted by highly dubious trading behaviours.

Importantly, manipulative trading trends are still being observed with CuDeco, even after M&G Group has exited the register. Research based on empirical data is demonstrating that CuDeco trading has been and still remains very heavily compromised.

The latest Senate submission is titled - 9.1 ASIC Senate Enquiry Submission Update
It is available from the following link:
http://www.scribd.com/collections/4378631/Chapter-9

ASIC Complaint 2013-4 is also available separately from the link:
http://www.scribd.com/collections/4325685/Chapter-8

A Parliamentary Inquiry is considered necessary to surmount the manipulation evident at present, and thus provide a transparent share market for millions of Australian investors.

Yours sincerely,

Maxw...".


Referred for the information of CDU shareholders concerned.

cheers,

Max