The Australian Securities & Investments Commission (ASIC) announced it has obtained ASX Group commitments to a reform package aimed at addressing shortcomings identified in the ASX Inquiry interim report, including stronger independence and governance for ASX’s clearing and settlement boards, a reset of the ‘Accelerate’ transformation program with clearer milestones and accountability, and an additional AUD 150 million capital charge on ASX Limited until remediation is completed. The interim report cites deficiencies in ASX’s governance, capability, risk management and culture, including a short-term financial focus that compromised critical market infrastructure obligations, a lack of strategic vision, a defensive culture, governance structures that do not ensure clearing and settlement subsidiary independence or investment levels, and supervisory practices that have not achieved desired outcomes. ASX’s commitments include ensuring clearing and settlement facility boards are composed of directors who are not directors of other ASX Group companies, and developing and implementing robust service-level standards for intra-group services provided to clearing and settlement facilities. The reset of ‘Accelerate’ will include new targets and benchmarking agreed with ASIC and the Reserve Bank of Australia (RBA). The AUD 150 million capital charge is to be implemented by 30 June 2027 and held until the agreed work under the new ‘Accelerate’ program is completed to ASIC’s satisfaction, alongside a review by ASIC of its regulatory guidance on market licensees’ financial resource requirements. ASIC and the RBA also committed to step up their review to uplift the joint supervisory model for the clearing and settlement facilities. The inquiry’s final report is due to be delivered to ASIC by 31 March 2026.
Australian Securities & Investments Commission 2025-12-15
Australian Securities & Investments Commission secures ASX commitments on governance reset and AUD 150 million capital charge after ASX Inquiry interim report
ASIC has secured commitments from ASX Group for a reform package addressing deficiencies from the ASX Inquiry interim report. Key measures include enhanced independence and governance for ASX’s clearing and settlement boards, a reset of the ‘Accelerate’ transformation program with new targets, and an additional AUD 150 million capital charge on ASX Limited until remediation is completed. ASIC and the Reserve Bank of Australia will enhance their joint supervisory model for clearing and settlement facilities.