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Australian Securities and Investment Commission
100 Market St
Sydney, 2000
ATT ; Investigations and Complaints
Dear Sir/Madam,
RE : iSignthis Ltd Share Volatility Investigation.
I am are aware of a report authored by James Samson & Dean Paatsch of Ownership Matters Pty Ltd AFSL 423168 ("Ownership Matters") dated 10th September 2019 (Report).about iSignthis Ltd ("ISX").
I am a shareholder of iSignthis Ltd ("ISX"), and I am concerned that the Report was authored by a Financial Services Licensee of ASIC, without having due regard and consideration to statements and disclosures made by the Company on the ASX. ISX's disclosure "Response to Ownership Matters Pty Ltd Report" dated 17/9/2019 refers.
The Report states that Ownership Matters has
not met with the Company, and has formed its views without any input or right of response from the Company.
Alarmingly, the Report contains the following disclaimer:
"Ownership Matters does not provide any warranty as to the accuracy, reliability or completeness any information which is contained in this document. Except insofar as liability under any statute cannot be excluded, Ownership Matters and its directors, employees and consultants do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this document or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this document or any other person.
This document has been prepared without consideration of any specific person’s needs or investment objectives and constitutes general advice only. It is for the use of clients of Ownership Matters only and may not be distributed to anyone who is not a client of Ownership Matters."Pursuant to section 1041E(1) of the Corporations Act 2001 (Cth) a person must not make a statement, or disseminate information, if:
(a) the statement is false in a material particular or is materially misleading;
(b) the statement or information is likely to induce a person in this jurisdiction to dispose of financial products or have the effect of reducing the price for trading in financial products on a financial market operated in this jurisdiction; and
(c) when the person makes the statement, or disseminates the information
i) the person does not care whether the statement or information is true or false; or(ii) the person knows, or ought reasonably to have known, that the statement or information is false in a material particular or is materially misleading.3.2 Pursuant to section 1041F(1) of the Corporations Act 2001 (Cth) a person must not, in this jurisdiction, induce another person to deal in financial products by making or publishing a statement if the person knows, or is reckless as to whether, the statement is misleading, false or deceptive.
Pursuant to section 1041F(1) of the Corporations Act 2001 (Cth) a person must not, in this jurisdiction, induce another person to deal in financial products by making or publishing a statement if the person knows, or is reckless as to whether, the statement is misleading, false or deceptive.
Pursuant to section 1041H(1) of the Corporations Act 2001 (Cth) a person must not, in this jurisdiction, engage in conduct, in relation to a financial product, that is misleading or deceptive or is likely to mislead or deceive.
It is my view, that:
A) For the reasons set out by the Company in its disclosure dated 17/9/2019, Ownership Matters ought reasonably to have known that the statements made in the Report were false in a material particular and/or materially misleading.
B) At the very least, each of Dean Paatch and James Samson and Ownership Matters were reckless as to whether the statements were misleading, false or deceptive.
C) Pursuant to section 912A of the Corporations Act 2001 (Cth), as the holder of an Australian Financial Services Licence, Ownership Matters is required to “do all things necessary to ensure that the financial services covered by the licence are provided efficiently, fairly and honestly.”
I request that ASIC investigates the above matters, including:
-who hired Ownership Matters to write the report
-what were the motives for having the report written
-did the report have an agenda or was it written from a balanced context reporting both positives and negatives
-what research methods were utilised to gain the information within the report.
-why was the company not asked any questions regarding any context of the report
-why did the report pose questions and not answer them with the research undertaken
- why was the report sent to some shareholders and not others.
- if it was a private report why and how did it become public knowledge that the report existed
-what was the distribution of the report trying to achieve
-who benefited from the share price volatlity, which led to the suspension of ISX on the 2nd October.
Yours Sincerely
[A whole lot of us ISX shareholders]
