ASIC Takes Legal Action Against ASX Over CHESS System Delay
ASIC Takes Legal Action Against ASX Over CHESS System Delay
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The corporate regulator has taken legal measures against ASX due to alleged misleading statements regarding the progress of its failed attempt to replace the Clearing House Electronic Subregister System (CHESS).
On February 10, 2022, ASX had publicized that the CHESS replacement was “on track for go-live” by April 2023. However, subsequent developments painted a different picture, prompting sharp criticism and legal actions from the Australian Securities and Investments Commission (ASIC).
ASIC's complaints arise from reassurances given by the ASX suggesting that the project was "progressing well." Yet, by late March 2022, ASX consulted Accenture, whose findings led to the project's shelving and $250 million in write-offs.
In his statement unveiling the court action, ASIC chair Joe Longo remarked, “There was a collective failure by the ASX board and senior executives.” He underscored that ASX’s promises are vital for trust within the financial markets.
“Companies and investors rely heavily on ASX’s communications regarding their operations to make investment decisions. A breach of confidence at this level induces extensive repercussions across the market,” Longo added.
The legal actions come on the heels of a pre-existing penalty amounting to $1,050,000 paid by ASX after an ASIC investigation scrutinized its adherence to market integrity rules.
Moreover, criminal charges were recently directed at four individuals allegedly involved in a "pump and dump" operation via Telegram, spotlighting ASIC's dedication to regulatory compliance.
The CHESS system, originating in 1994, initially replaced a laborious paper-based clearing approach. The award-winning transaction clearing system proved instrumental for brokers who floated the exchange in 1998, now known as ASX Ltd. The shift from manual to digital processes was seen as a massive leap in operational efficiency at the time.
ASX had planned to replace the decade-old CHESS system beginning in 2016, targeting an April 2021 completion date. However, the project timeline was redefined to April 2023 after re-planning in March 2020.
Subsequently, Digital Assets, ASX’s advisory consultants, flagged the project with a “red RAG” status from June to November 2021, indicating severe risks to timely delivery without appropriate mitigations.
This red status, an IT project management term for serious concerns, was documented and presented to ASX’s audit committee in early February 2022. Nonetheless, ASX published its half-yearly report a week later, asserting that the project was "tracking to plan and progressing well," a statement that ASIC now disputes.
Longo emphasized, “We will argue that the project was not ‘progressing well’ as of February 10, 2022. The postponement and subsequent pause in November 2022 have significantly impacted ASX and the market participants dependent on these assurances.”
Highlighting the necessity for transparent and efficient management of such pivotal projects, Longo remarked, “Ineffective handling erodes confidence in Australia's market's ability to attract investment.”
The original article was published by Neale Prior for The West Australian
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Australia’s light-duty truck market has entered a new buying cycle, with major brands refreshing their ranges for 2026 and giving operators more choice across diesel, hybrid and electric platforms. For sole traders, delivery businesses, tradies and fleet managers, the timing matters: new emissions rules, softer broader truck sales and rising operating costs are all reshaping how businesses think about their next vehicle purchase. - read more
Australia’s electric vehicle market is broadening beyond compact SUVs and sedans, with Xpeng preparing to bring its X9 electric people mover closer to local showrooms. The brand, which entered Australia with the G6 electric SUV in 2024, now has a local web presence for the X9 and the model has already appeared in Australian approval records, suggesting a launch is moving from speculation to serious preparation. - read more
Leapmotor has given Australian electric SUV shoppers a timely value update, confirming a revised MY26 C10 battery-electric range that focuses on longer range, quicker charging and a simpler line-up. For buyers weighing up an electric car loan, the headline is straightforward: the updated C10 Design Long Range keeps its $49,888 price before on-road costs while adding meaningful hardware improvements. - read more
Australian businesses are increasingly treating electrification as a cost-control strategy, not just an environmental decision. Recent reporting on bank lending data shows a sharp rise in finance for green equipment, with NAB saying its green equipment loan uptake between March and May 2026 was almost double the level recorded over the same period last year. - read more
Australian mortgage holders received a brief reprieve on 16 June 2026, when the Reserve Bank of Australia left the cash rate unchanged at 4.35%. After three consecutive increases earlier this year, the pause means many variable-rate borrowers will not face an automatic repayment jump from this particular meeting. However, the message from the central bank was cautious rather than celebratory: inflation remains above target, and further tightening has not been ruled out. - read more
In the journey to secure a commercial vehicle loan, preparation is key. Just as a vehicle needs to be in perfect condition to hit the road, your loan application requires meticulous attention to detail to ensure a green light from lenders. This article embarks on the essential journey of understanding the critical checkpoints before applying for a commercial vehicle loan. We navigate through the path of prerequisites that pave the way for a seamless approval process. - read more
Finding the right financing for a commercial vehicle in Australia can be a critical step for businesses and individuals alike. Whether it's for a single van or an entire fleet of trucks, understanding the intricacies of commercial vehicle loans is key to securing a deal that aligns with your financial goals. One factor that stands out in determining your loan terms is the credit score—a numerical representation of your creditworthiness. - read more
Getting the right truck loan can be essential for business owners who rely on commercial vehicles. These loans cover a variety of commercial vehicle types and are crucial for ensuring your business operations run smoothly. Truck loans, specifically, provide the necessary finances to purchase trucks, which are indispensable in industries like logistics and delivery services across Australia. - read more
Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more
Maintaining your truck is essential if you want to prolong its lifespan and save money down the road. Australian conditions can put a lot of strain on your vehicle, and neglecting its maintenance can lead to costly breakdowns and repairs. - read more
Start Here
Get a free truck loan eligibility assessment and compare truck finance and leasing options
without accessing your credit file!!
Knowledgebase
Bridge Loan: A short-term loan used until a person or company secures permanent financing or removes an existing obligation.
No comments yet. Be the first to share your thoughts.