I have read the ASX market announcement and reasons document and I have not changed my mind regarding ASX’s performance over the past 7 months and given ASX has not drawn firm conclusions with regards to ISX, my opinion on whether the “reasons” report should have been disclosed to the market has also not changed.
I have been and am still consistent in my opinion about what ASX as a market regulator should have done to maintain its integrity and our trust in the financial markets. Not only has ASX potentially succeeded in destroying ISX’s reputation, but ASX has, in the process, destroyed my opinion of ASX as a respected market operator ( not that I think that I, as a small retail investor, would matter at all to ASX).
In my opinion, ASX:
1. Should have clearly defined the meaning of revenue back in 2014 when the reverse listing of ISX and the performance shares were being approved. Stating now that revenue means only revenue from ISX’s core business activities is not realistic or fair, although I do recognise ASX’s concern. If ISX has broken a well-stated law, then fine, but it is not valid if ASX is only now defining revenue to suit something ASX just doesn’t like because they neglected to define it properly in 2014.
2. Should have investigated the milestone shares a year and a half ago, and before investors entered the market in the last half of 2018and 2019 instead of when ISX came into profit and started to become successful. I consider this a serious dereliction of ASX’s duty to shareholders.
3.Should have suspended ISX and clearly declared the reason: That ASX was investigating the milestone shares and whether ISX had made adequate disclosures to the market. Period. And ISX should have been kept suspended until there was a firm conclusion to announce to the market.
4.Should not have broadcast the running commentary on ASX’s investigation or this “reasons” report until the investigation was completed and there was a firm conclusion instead of their waffly statements on what it “looks” like to ASX. This is not, in my opinion, adequately informing the market – it is only a statement of ASX’s suspicions and reasons for suspicions.
5.Should have handed the investigation over to ASIC and left ASIC to suspend ISX and to investigate since ASX has a clear and perceived conflict of interest according to ASX’s own definition in ASXdocumentation.
If what ASX has done to date was purely to protect the ISX shareholders and to ensure that investors have confidence in the market, ASX failed miserably. ISX shareholders who entered the market late 2018 and 2019 have not been protected by ASX and I, for one, have absolutely nil confidence in ASX as a fair and balanced operator of our financial market for the reasons stated above after watching the circus performed by ASX over the last 7 months.
