Tricom's green light

Stockbroking group Tricom has announced it has finalised conditions for continuing admission to the ASX, but the very sketchiness of its release (it did not indicate what those conditions were) prompted some observers in the market to speculate on whether this omission in fact broke those conditions in the first place.

A Tricom spokesman told Business Spectator that displaying the conditions on its website, or through a market release, wasn't a condition, but Tricom would elect to do so anyhow sometime this week. The fact that some in the market were questioning this at all, however, shows that Tricom has a long journey ahead of it to restore the confidence lost when it failed to settle trades in January of last year and came close to collapse.

On February 17, Tricom reached an agreement with ASIC to build a new and enhanced risk and compliance framework that would allow it to continue to participate on the ASX and with the ASX Settlement and Transfer Corporation (ATSC) and ACH Clearing.

"While there have been deficiencies in the past, our work with ASIC and the ASX will strengthen the position and reputation of the new Tricom in the market for the future,” said managing director Robert Topfer, an ex Babcock and Brown director.

Tricom was restructured on November 11 last year with the assistance of its shareholders and creditors. For the past year, it has been working with ASIC and the ASX to build a new risk and compliance framework.

"ASX acted decisively to protect the market at the outset when it initially established conditions upon Tricom's ASX, ACH and ASTC participation on 30 January 2008, and ASX and Tricom have since worked constructively to ensure an orderly outcome for clients and the market overall,” Topfer said in today's release. "It is a tribute to all concerned that the outcome for Tricom and its clients has been significantly different to that of others.”

The conditions have been relaxed somewhat from those imposed in January last year, but are still in place until January 2011. Tricom said its restructured business continues to trade well in excess of regulatory capital adequacy requirements.