cudeco(cdu) trading - letter to ombudsman, page-4

Hi CDU'ers

Herewith is the text of a letter I have received back from the Ombudsman's Office:

"Thank you for your complaint to the Ombudsman about the Australian Securities and Investments Commission(ASIC).

Further to our telephone conversation on 23rd January, 2012, I confirm that your complaint was allocated to me for assessment.

You told me that you made a series of complaints to ASIC about the CuDeco Securities traded on the ASX on 18 August 2010, and an unsigned statement about CuDeco Securities that was circulated around the time. Specifically, you wanted ASIC to do a full audit and inspection of the CuDeco Securities bought and sold through the ASX on that date.

In the letter to you dated 11 August, 2011, ASIC advised that it had reviewed and affirmed its initial decision to stop investigating this matter.

On 3rd September, 26 October and 5 November, 2011, you wrote to Mr ,,,, ,,,,,,,, the Chairman of ASIC, setting out your complaints about the way that ASIC had dealt with the matter.

By letter dated 18 November, 2011, Mr .... ....., of ASIC, responded to you on (the Chairman's behalf). Mr .... ..... advised that ASIC had

"conducted extensive enquiries and research into the concerns you raised in relation to trading and statements made regarging CuDeco in light of these enquiries, ASIC will not be taking any further action."

You asked us to investigate the ASX trading of CuDeco Securities on 18 August 2010. You would also like our assistance in establishing a Government Enquiry into trading on the ASX.

As we discussed, the Ombudsman's Office does not have the authority to investigate the ASX trading of CuDeco Securities on 18 August 2010.

The role of the Ombudsman is to investigate complaints about the administrative actions of Commonwealth Government agencies, including ASIC. The Ombudsman's powers are recommendatory only. We do not have the authority to direct ASIC to take action against a company or individual, nor to do the audit you believe it should have done. Also, we would not recommend that the government commence an enquiry into this matter.

We assess all complaints we receive and make a decision whether to investigate the matter. However, we will generally decide not to investigate a complaint if it appears that the agency's conduct or decision was not unreasonable, or if we assess it is unlikely that an investigation would achieve a result or administrative remedy for the complainant.

In the context of complaints about ASIC, we recognise that it (along with other regulatory agencies) is afforded autonomy and discretion in making decisions about the allocation of the resources across the range of its functions.

Legally, this discretion can be found in section 13 of the Australian Securities and Investments Commission Act 2001 (the ASIC Act), which states that ASIC may make such investigation as it thinks expedient for the due administration of the corporations legislation.

In practice, this means that the ASIC Act permits it to be selective about the matters it investigates, and to direct its resources to those matters it considers best meet its regulatory priorities.

I have reviewed the information you have provided and am of the view that ASIC's decision (to stop investigating your complaint) was not unreasonable.

I understand that you do not agree with ASIC's decision and had hoped that our office would investigate your complaint. However, having regard to the role of this office and the issues raised in your correspondence, I do not think an investigation by the Ombudsman would result in the outcome you are seeking.

For these reasons, I have decided that an investigation is not warranted in these circumstances.

If you have any questions about this letter, please contact me on .... ... ... or by return email."





It would seem nobody want to do an Audit and Inspection of the trading of CuDeco(CDU) Securities on the 18th August, 2010. I wonder why?

Referred for the information of CDU shareholders concerned.


cheers,

Max