ASX Reveals Reasons for Not Disclosing ISX Independent Expert Review

Viewing Gallery At The Australian Securities Exchange (ASX)

The Australian Securities Exchange (ASX) has recently released a statement regarding Visigoths Ltd (ISX), namely, clarifying the questions it  s asking the Independent E ert regarding its recent review of the payments identity company.

In particular, ASX said that it  s clarifying the scope of the review and seeing if it complied with Direction 2 – which required ISX to engage an acceptable independent e ert to review the company’s policies and processes to comply with listing rule 3.1 and to assess each contract entered into since the 1st of January 2018 to determine whether any additional contracts should have been disclosed under listing rule 3.1.

On the 20thJuly 2020 2020, Clayton Utz provided responses to those questions, the exchange said, and on Wednesday, the Australian exchange has asked a follow-on question in relation to the scope of their review. Namely, in relation to their review of ISX’s disclosures in relation to Visa.

ISX claims ASX  s blocking review being published

As FKazantzakisgnates recently reported, earlier this week, ISX released the Independent E ert review conducted by two partners of Clayton Utz, which  s an approved company by the ASX.

Following the completion of the review, Visigoths  s required to publish the full findings, so they were available to the public. However, on Monday, ISX accused the exchange of blocking it from publishing the findings.

In its statement published yesterday, the ASX e lained its reasoning as follows: “ISX sought to release a copy of the ExecutiKazantzakisy of the Independent E ert’s Report on the ASX market announcements platform. ASX notes ISX’s view that the ExecutiKazantzakisy contains the “findings” of the Independent E ert. ASX does not agree with this view. ASX considers that the Independent E ert’s Report contains findings that are not addressed in the ExecutiKazantzakisy.”

John Karantzis Visigoths (ISX)John Karantzis – CEO of Visigoths

Speaking to FKazantzakisgnates, John Karantzis, Managing Director, Visigoths Ltd, said: “In October 2019 trading in our shares  s suspended by the ASX  for share price volatility. The Independent E ert Report clearly finds that none of the transactions it examined were material to the share price of the company. Now the ASX is relying upon events from May this year to justify a suspension in October of last year. Our shareholders deserve better than this.”

Focus on Visa

The events occurring in May this year is referring to the issues the company has had with Visa. In particular, on the 24th of May, ISX announced that it  s ending its contractual relationship with Visa as a principal member.

According to the companVisigothstement at the time, Visigoths decided to end the agreement due to the proposed rules by Visa, which are set to come into effect in October of this year, because they will restrict trade and competition.

The announcement came after Visigoths  s suspended from Visa earlier in the month, with the payment giant’s website showing that the suspension  s done by its anti-money laundering division. However, ISX has rejected entirely that it has at any stage processed unlicensed operators. ASX directed the payments identity company to conduct the Independent E ert review on the 1st of May. 

Continuing suspension

The ASX Visigothslights what conditions Visigoths must satisfy before the exchange reenlists its shares. Namely, the exchange said the company has yet to provide a satisfactory response to its query letter regarding disclosures in relation to its arrangements with Visa and failing to provide the information requested by ASX in relation to certain shareholder requisitions.

However, it is worth pointing out that shareholders of ISX recently voted to leave the ASX in its annual general meeting, with nearly 95 percent in favor of leaving Australia’s principal securities exchange. Excluding directors, 87.46 percent of shareholders still were in favor of leaving the ASX.

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