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Enron Mail |
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Subject: Exempt Market Declaration - Australia Today I spoke to the Jillian Segall, National Commissioner of the Australian Securities and Investments Commission (ASIC). I have arranged a meeting with her and staff handling our application next Wednesday afternoon. Paul and I will go and we will take Mallesons. I have foreshadowed to her that we would be willing to withdraw and resubmit our application (addressing credit/prudential issues as ASIC staff had suggested to Mallesons). However we would like to explain face to face the circumstances. I said that we didn't want any impression that Enron had either lost interest or were acting in a fit of pique. Quite the contrary we see the grant of the Exempt Market Declaration as critical and appreciate their efforts to date. (Considering Paul Q's well known aversion to blunt talking I thought it wise to foreshadow what we wanted to cover, as follows.) We understand that unless we can comply with the exact requirements of Policy Statement 70 (para 50) then ASIC believes it is required to make new policy and could not act within the time frame we require. The Minister's office indicated he could not attend the launch of a product that was the subject of an EMD application. Withdrawing the application whilst we clarify the credit issues would remove this timing pressure from ASIC. We have made the determination that an EMD is not required for us to launch weather products on EOL. That being the grant of an EMD (especially with CLERP 6 coming early next year) is the regulatory certainty that Enron would require if its plans to develop Sydney as a regional centre were are to progress. I indicated we would also be expressing our suggestions on ASIC concerns with procedures that purport to oversee creditworthiness of market participants. In essence it was a most positive discussion. Assuming all falls into place we can maintain our strategy of using the political support to get an EMD whilst allowing the launch to go ahead next month. Enron Australia is also seen as conciliatory to ASIC's concerns whilst maintaining the pressure. Paul (Simons) we appreciate your ongoing help. We also understand the sensitivity at present re an EEFT guarantee.
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