The Australian Securities & Investments Commission (ASIC) has published the ASX Inquiry Panel’s Final Report into the Australian Securities Exchange (ASX) group, finding that governance, capability and risk management weaknesses have compromised the resilience and stewardship of critical market infrastructure. ASIC will closely oversee, alongside the Reserve Bank of Australia (RBA), ASX’s implementation of the commitments agreed in December 2025. Drawing on more than 140 stakeholder interviews, an expert technical report on CHESS, international benchmarking and a review of over 10,000 documents, the Panel reiterated concerns that resilience has been compromised to deliver high shareholder returns, governance arrangements do not sufficiently prioritise critical market infrastructure, and capability and cultural barriers are impeding transformational change. Additional observations included that ASX’s risk management and compliance practices need to mature and be embedded in business processes, and that ASX’s execution of its own market supervision responsibilities requires further reflection. ASX submitted a Commitments Plan to ASIC on 27 February 2026, covering a reset of its Accelerate program by 30 June, a revised technology strategy aligned with a refreshed business strategy, and a AUD 150 million net tangible assets capital charge to be implemented by 30 June 2027, which ASX will hold until the agreed strategic reset work is completed to ASIC’s satisfaction. Steps cited toward meeting the capital charge include reducing the 1H26 dividend payout ratio to 75% from 85% of underlying net profit after tax and operating a discounted dividend reinvestment plan; governance changes highlighted include Clearing and Settlement facility boards now comprising solely independent directors following February 2026 resignations, alongside work to appoint additional directors, a new CS Managing Director and greater functional separation. ASIC and the RBA are also uplifting their joint supervisory model for ASX’s clearing and settlement facilities, including establishing a joint working group focused on a forward-looking, outcomes-based approach to supervision. While transformation progresses, ASIC highlighted the need for safe and efficient day-to-day operation of ASX infrastructure, including the CHESS Replacement Release One transition currently scheduled for go-live in late April 2026.
Australian Securities & Investments Commission2026-04-02
Australian Securities & Investments Commission publishes ASX Inquiry Final Report and oversees ASX reform commitments with the Reserve Bank of Australia
The Australian Securities & Investments Commission has released the ASX Inquiry Panel’s Final Report, finding governance, capability and risk management weaknesses at the Australian Securities Exchange have compromised critical market infrastructure. ASIC and the Reserve Bank of Australia will closely oversee ASX’s Commitments Plan, including a reset of its technology strategy, a AUD 150 million net tangible assets capital charge and governance changes, while enhancing their joint supervisory model for ASX’s clearing and settlement facilities and monitoring the CHESS Replacement Release One transition.