LDS-ME returning BadSecurityPolicyRejected|OPC UA Standard|Forum|OPC Foundation

I have installed the "release candidate" of LDS-ME (opc-ua-local-discovery-server-1.03.340-20160504) and, using opc.tcp on port 4840, I have attempted to call its FindServersOnNetwork service. This, however, always results in BadSecurityPolicyRejected error message from the server.

The SecurityPolicyUri passed in the OpenSecureChannelRequest is "https://opcfoundation.org/UA/SecurityPolicy#None" (and there is no SenderCertificate).

I do not understand why I am getting this error. The spec says "This Service shall not require message security but it may require transport layer security. ". So, no message security should be OK. Isn't it something with transport layer security - but if so, what kind of transport should be used?

The client code is with current .NET stack 1.03, and uses the following method on the DiscoveryClient to create the channel - I do not see anything better to use there:

public static DiscoveryChannel Create(Uri discoveryUrl, EndpointConfiguration configuration, Binding binding, string configurationName)

Is the LDS-ME server supposed to handle this request? If not, how should the request be changed so that the server accepts it?

Alternatively, is there a client, or a sample code, that *does* work well with this LDS-ME, so that I can compare the requests and determine what's wrong?

Thanks for help